HUNDREDS of British tech firms could be bailed out as soon as Monday following the collapse of the Silicon Valley Bank.
PM Rishi Sunak said today the Treasury is “working at pace” to protect scores of UK companies who have had their accounts with the UK branch of the collapsed bank frozen.
Rishi Sunak is plotting a bailout for British tech firms affected by the collapse of the Silicon Valley Bank
Firms have warned of a “start up extinction event” with the loss of thousands of jobs the coming days as bosses have were left unable to pay their wage bills.
The Chancellor said on Sunday morning that he “will bring forward immediate plans to ensure the short term operational and cashflow needs of Silicon Valley Bank UK customers are able to be met.”
The PM insisted there was limited “contagion risk” for the wider UK economy, but the Treasury had spent the weekend looking at how to protect depositors cash-flows and avoid a meltdown.
Speaking on board his jet to San Diego, Mr Suank said: “We have been working through over the weekend.
“We’re working to recognise the anxiety and the concerns customers of the bank have and making sure we can work to find a solution that secures people’s operational liquidity and cash-flow needs.
“And that’s what the Treasury is working on.”
Asked if the Treasury will come up a solution by the time the markets open on Monday morning, Sunak replied: “The Treasury is working at pace.”
But he declined to be drawn on the details, suggesting reports of a UK emergency fund to guarantee deposits was “speculation”.
He told reporters: “We’re working through it, the Treasury is in touch, I’ve been in touch… we don’t believe that there is a systemic risk in the UK.
“Lots of different things they are looking at. Just rest assured they’re working through it over the weekend and are making sure there is a solution that provides operational liquidity for people’s cash flow needs”
Asked if he is satisfied central Bank of England governor Andrew Bailey is overseeing a robust regulatory environment for UK banks, Mr Sunak insisted “yes.”
Mr Sunak says the Treasury is ‘working at pace’ to UK companies adversely impacted by the collapse of the bank
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