Game industry interest group Tiga supports the UK government’s new proposals to stimulate bank lending, as long as it is effectively implemented.

Earlier today the Labour Government announced a series of measures which it hopes will boost bank lending to UK businesses. Part of the package includes a Working Capital Scheme which secures up to £20 billion of short -term bank loans to businesses that have an annual turnover of up to £500m.

For smaller businesses with a turnover up to £25 million, the Government is proposing a similar scheme which secures up to £1.3 billion of additional bank loans.

“These are comprehensive measures focused on one purpose - increasing the amount of lending that is available to families and to the businesses who are the backbone of our country and who want to invest and create jobs,” said UK Prime Minister Gordon Brown.

Also as part of the package, the Government and national banks will gather a cash supply of £75 million which will be used to invest in small businesses that need equity.

“We know that some companies are struggling to secure the finance they need, not because of any failure in their business but due to the tougher credit conditions," said  Business Secretary Lord Mandelson. “That is why we have designed a package of measures addressing different forms of credit and providing real help for businesses."

Richard Wilson, CEO of Tiga, welcomed the new proposals. “Managing cash flow is crucially important for all businesses. Many games developers use bank finance to help fund their operations. Measures to promote the availability of credit, if effective, will be supported by the industry.”

“Tiga will monitor the effectiveness of both the Government’s and the Bank of England’s counter-recessionary policies in the months ahead. The Government will almost certainly need to take further measures to increase the availability of credit and strengthen the banks.”