Barclays Under U.K. Treasury Pressure to Fix Virus Loans Issues
Barclays Under U.K. Treasury Pressure to Fix Virus Loans Issues
(Bloomberg) --
Barclays Plc is under political pressure to fix problems with emergency loans that has left small companies struggling to get help during the coronavirus pandemic.
Customers have faced issues applying for Bounce Back Loans, which are administered by commercial banks but 100% guaranteed by the state, Mel Stride, chair of the Treasury Committee, said in a letter published Thursday.
“I have asked Barclays to explain what is happening, and what it is doing to fix any issues that have arisen,” said Stride. His letter follows a public hearing on Monday when Matt Hammerstein, chief executive officer of Barclays Bank UK, assured members of parliament that the system was able to cope.
The loan program is the latest U.K. government effort to help small businesses survive the coronavirus lockdown, and has attracted hundreds of thousands of applications since launching this week. It comes after some small firms complained of difficulties accessing the Coronavirus Business Interruption Loan Scheme, which launched on March 23 and offers guarantees on 80% of the debt.
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