On 22nd September the Government’s British Business Bank, which underwrote £47.4 billion of credit on bounce back loans, reported a record £293.5m profit.
Its Chief Executive Catherine Lewis La Torre said that early signs were that repayment performance on bounce back loans was ‘better than expected’. Previous indications from the Bank last year were that between 40 and 50% of borrowers could default.
Ms Lewis La Torre did not say exactly what ‘better than expected’ is and nor did she reveal details of the Bank’s modelling indicating that defaults would be much higher.
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