The British Business Bank has warned that there is a risk of default on the covid support loans Banking

The British Business Bank, which is backed by the UK government, has warned that the slumping economy could increase the number of companies that cannot repay their loans, including support for the coronavirus pandemic.

“Loan delinquencies could increase in the event of an economic downturn,” the BBB said in its annual report on Wednesday in Vivid Crisis Credit Schemes.

The report was published on the same day that the Bank of England was forced to intervene in bond markets to protect Britain’s financial stability, last week saying the UK was already in recession.

During the outbreak, the government led by then Chancellor Rishi Sunak launched a series of tens of billions of pounds worth of loan schemes to prevent businesses from collapsing. The bank asked him to manage several.

The BBC said 85 percent of its Covid-19 loan payments had been fully paid or met monthly payments on schedule, but chief executive Catherine Lewis La Torre acknowledged “issues of economic and geopolitical uncertainty” as the UK offered continued support. Failure.

She said the bank had achieved successes, including better-than-targeted financial returns, but added that more support may be needed for small British businesses.

“Despite this success in the last financial year, we know there are areas of economic and geopolitical uncertainty,” she said. “The headwinds the economy is facing make the National Economic Development Bank an invaluable strategic asset, and we are ready and willing to play any role we need to support the UK’s small businesses.”

The BBB has faced criticism over its handling of fraud and losses linked to its coronavirus funding, with former Conservative minister Theodore Agnew calling for increased transparency, particularly regarding the £47bn bailout scheme. Recipients of the refinanced loans have in some cases used them to pay for jewelry, expensive cars, property, and pornography — rather than to finance businesses.

The bank said it had increased its anti-fraud resources during the year but admitted weaknesses, particularly in its loan recovery system, which left it open to fraud.

“The design of the refinance scheme and the speed of its implementation, however, led to unprecedented levels of fraud and financial crime,” the report said.

The bank has so far refused to disclose the names of the companies that have received loans, it will harm business interests. Campaign group Spotlight on Corruption is taking the BBC to court to force it to release the names.