UK Government's Emergency Response to SVB Bankruptcy... Measures to Be Announced as Early as Tomorrow

[Asia Economy Reporter Oh Su-yeon] The UK government has launched an emergency response following the bankruptcy of the US Silicon Valley Bank (SVB). It plans to announce liquidity support measures as early as tomorrow.

On the 12th (local time), Jeremy Hunt, the UK Chancellor of the Exchequer, issued a statement saying, "We will immediately implement measures to ensure that SVB customers' short-term operating funds and liquidity needs are met."

Jeremy Hunt UK Chancellor of the Exchequer
[Photo by Yonhap News]

Chancellor Hunt stated that he is discussing the matter with Prime Minister Rishi Sunak and Andrew Bailey, Governor of the Bank of England (BOE). It is reported that liquidity support measures for companies dealing with SVB will be announced as early as tomorrow.

In an interview with Sky News, Chancellor Hunt said, "The government and the BOE will do everything possible to provide support," adding, "We aim to help companies pay their employees and meet cash flow demands while also seeking long-term solutions for the future."

Earlier, on the 10th, the California Department of Financial Protection and Innovation closed SVB due to insufficient liquidity and insolvency. The BOE stated on the 10th that SVB's UK branch would also enter bankruptcy. However, it noted that the branch does not have a significant presence in the UK financial system.

The previous day, over 250 representatives of UK IT companies requested government intervention, stating they face serious threats due to SVB's bankruptcy. They warned, "Loss of deposits could cause severe damage to the IT sector and potentially set the business ecosystem back 20 years."

This content was produced with the assistance of AI translation services.