Greensill Capital was given £418.5m worth of loans during the pandemic but as the government guarantees 80% of the value of loans made through the covid-19 scheme, if the loans are not repaid, the taxpayer will lose £335m
The National Audit Office (NAO) has released its investigation on Greensill Capital’s involvement in the government’s covid-19 Businesses Support Scheme loans.
The watchdog found that the government owned British Business Bank carried out limited due diligence on Greensill’s application before permitting access to the Coronavirus Large Business Interruption Loans Scheme (CLBILS).
The report examined the background and context of the covid-19 scheme that Greensill took part in, looked at the bank’s consideration of Greensill’s application and accreditation, its lending activity under the loans, and the company’s compliance with scheme rules.
In spring 2020, the government set up the Coronavirus Business Interruption Loan Scheme (CBILS) and CLBILS to help businesses access loans, overdrafts, and other types of finance.
