Background
The Policy and Technical team continues to speak with treasurers to understand what issues they are facing and in what areas the ACT can help. We are also talking with the main banks to understand how they are responding to the COVID-19 crisis. At the same time, we have held a number of conversations with HM Treasury, the Bank of England, the CBI, the City of London Corporation and UK Finance. Through these forums we have been able to ensure that the views of the treasury community are heard by policymakers through a number of different channels.
A list of useful material from the ACT, the Regulators, the Government and Others can be accessed from the ACT Knowledge Hub.
Please continue to answer the 3 quick questions in our “temperature check” so that we can share with you the trends week on week. View last week's results here.
General overview
As businesses continue to open up, treasurers are beginning to focus on their capital structures and the level of debt they carry. This week’s newsletter includes guidance and help for those looking at how the pandemic may have affected their business in the short and long term.
The CCFF scheme
Taken from the Bank of England report, the following table provides some interesting insights (https://www.bankofengland.co.uk/markets/bank-of-england-market-operations-guide/results-and-usage-data).
The data shows that only 34% of applicants to the CCFF facility have currently drawn on this facility (down from 35% at 24 June) and whilst the notional sum of drawing capacity has decreased from £76,370m (a 0.5% change), the actual amount currently outstanding has increased from £18,596m (a 14% change).
Details of current borrowers under the facility can be found at https://www.bankofengland.co.uk/-/media/boe/files/markets/covid-corporate-financing-facility/cp-held-by-ccff-by-business.xlsx.
More information on the programme can be found under https://www.bankofengland.co.uk/markets/covid-corporate-financing-facility.
If you have questions you’d like raised with the Bank of England, please email technical@treasurers.org
We are starting to hear from firms that have been able to access the CCFF programme; we provide anonymised feedback to the Bank of England. If you’d like to share your experiences, please drop an email to technical@treasurers.org.
Other Schemes
The Bank has also made available details of the other schemes being made available (https://www.gov.uk/government/collections/hm-treasury-coronavirus-covid-19-business-loan-scheme-statistics#Coronavirus-Business-Interruption-Loan-Scheme ). The tables below show an extract from this and it shows that:
Update from the UK regulators
Views from across the world
As a member of the International Group of Treasury Associations, and the European Association of Corporate Treasurers and working with our colleagues in the US National Association of Corporate Treasurers we are keeping an eye on developments overseas.
Engaging with the treasury community
We welcome conversations with our members on:
Send an email to technical@treasurers.org and either James Winterton, Naresh Aggarwal or Sarah Boyce will be in touch with you.
If you have found any resources which you feel we should add to our COVID-19 site, please email us with details.
Naresh