"This package goes some way to kick-starting credit markets and helping business access the finance they need. By underwriting loans, the government scheme could provide welcome breathing space for firms faced with cash flow problems after credit markets dried up. With a framework soon to be in place, businesses will be looking to Banks to follow the government’s lead by restarting the flow of finance.
"But as business waits for credit markets to thaw, government needs to ensure that vital parts of the supply chain are not lost amidst this maelstrom and quickly put in place support for trade credit insurance and measures to protect skilled jobs."