The UK manufacturing industry is to receive a £1 billion finance fund from the Royal Bank of Scotland, according to a report by the Press Association (PA).
The announcement comes after figures released by the Office for National Statistics yesterday showed UK manufacturing fell by 5.4 per cent from November 2008 to the same month in 2009.
According to the news agency, the fund will provide manufacturers with affordable finance ahead of an expected increase in demand as Britain comes out of the recession.
Manufacturers will have access to loans of between £250,000 and £25 million, subject to discount rates and arrangement fees and will be given the option to defer capital payments and pay interest for only three years.
This money could then be used to buy bulk machinery.
A spokesman for manufacturing body the Engineering Employers’ Federation told the PA manufacturers have had a "rough ride" over the past couple of years.
"But a recovery is on the way and companies will need the support of the banks as they invest and gear up for growth," he added.
The bank, which is 84 per cent owned by tax payers, has come under increasing pressure to extend financial funding for business during the economic downturn.
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