Business

Danske Bank approves £50m in first week of bounce back loan scheme

Danske Bank said it had approved £50m in the first week of the bounce back loan scheme.
Ryan McAleer

THE north’s largest lender Danske Bank has said £50 million of UK Government-backed bounce back loans have been approved in the first week of the scheme.

Applications for the new scheme, which offers loans of up to £50,000 to small businesses, opened on Monday May 4.

The bounce back loan scheme (BBLS) is 100 per cent backed by the UK Government, and is interest and payment free for the first year.

Most of the north’s main banks have been approved for the scheme, with Bank of Ireland still seeking accreditation.

Danske Bank said yesterday that it had approved around £200m of lending to business customers across the north since the middle of March, with around £80m provided through the Coronavirus Business Interruption Loan Scheme (CBILS).

The AIB group said yesterday that it had aside €210m (£184m) in the first quarter to cover expected loan losses. Initial three-month payment breaks agreed by the group included 19,972 mortgages, 13,831 for businesses and 18,696 personal loans, with a further 5,000 modifications put in place for UK customers.

Meanwhile the former chief executive of Invest NI, Alastair Hamilton, has joined the board of Danske Bank UK as a non-executive director.

Mr Hamilton last year stepped down as head of the economic quango after ten years.

Speaking yesterday, he said: “I have always held Danske Bank in high regard and I am looking forward to working alongside my new board colleagues, and the local senior management team, as we continue to support customers and navigate these challenging economic times.

“Danske Bank has a strong position in the marketplace and will play a key role in getting Northern Ireland moving again over the months ahead and beyond.”

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