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Treasury scheme could help fund new vehicles, reports BVRLA

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Asset finance and leasing could be included in the government's latest credit easing initiative, report the British Vehicle Rental and Leasing Association (BVRLA).

Speaking at the Lord Mayor of London's annual Mansion House dinner this month, the Bank of England Governor, Sir Mervyn King, said: "The Bank and the Treasury are working together on a 'funding for lending' scheme that would provide funding to banks for an extended period of several years, at rates below current market rates and linked to the performance of banks in sustaining or expanding their lending to the UK non-financial sector during the present period of heightened uncertainty."

The details of the scheme are due to be finalised over the coming weeks but HM Treasury said it would "be open to all kinds of lending to the real economy so long as the discount is passed on to businesses".

The BVRLA believes this could benefit rental and leasing firms that may still be concerned about accessing funding for new vehicles.

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