British business borrows £2 billion more through CCFF slows but demand eases

Britain's biggest companies borrowed much less from the government's CCFF scheme last week in a sign the frenetic demand for cash seen earlier in the coronavirus crisis had peaked.

The Covid Corporate Financing Facility, run by the Bank of England and HM Treasury, lent out £1.9 billion, figures showed Thursday, down by two-thirds from £5.2 billion in the prior week.

Another 12 businesses were approved to use the scheme, taking the tally to 105 firms.

The scheme, unveiled by Chancellor Rishi Sunak on 23 March, buys short term IOUs known as commercial paper issued by companies as a speedy mechanism to lend cash.

In total firms have borrowed £17.7 billion since the scheme started, much more than the CBILS plan for smaller firms which has lent £5.5 billion so far.

The CCFF money is supposed to help with short term cash flow issues although it is not known if there is any oversight from the Bank on how the cash is used.

To borrow through the facility, firms have to investment grade rated and make a "material contribution" to the UK economy.

British Airways owner IAG on Thursday revealed it had borrowed from the CCFF.

Companies using the scheme include easyJet, Intercontinental Hotels and Greggs.