Why is the Government considering offering EIB-related guarantees?
The EIB will normally require a proportion of lending to sub-investment grade companies to be guaranteed by a third party. The Government recognises that such companies may struggle to obtain a guarantee under current credit market conditions, and may therefore consider providing a proportion of this guarantee, if there is evidence that the company has been unable to find support from a third party guarantor. All applications will be assessed on a case-by-case basis.
