Updated: 06/15/2012 18:14

Britain announces 'funding for lending' growth scheme

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Britain has announced plans to provide the country's banks with cheap funding.

This is in an effort to stimulate lending and boost its ailing economy.

Banks in Britain will be able to receive cheap funding, if they can prove they are lending out sufficient amounts to households and businesses.

It is hoped that the scheme will help clear the blockage in credit lines, which has hampered the country's recovery from the 2008 financial crisis.

The scheme is expected to be in place within a few weeks.

The British government enjoys unusually low borrowing costs, as investors see its bonds as a safe haven from the eurozone crisis.