Statistics suggest that the Bank of England has not yet invested
any of its £175 billion (€191 billion) economic stimulus package on
support for the leasing market, despite announcing in July that it
would start doing so, according to independent IT financier
Syscap.

The government announced in July that as part of its
quantitative easing programme, it would start buying secured
commercial paper backed by equipment leases. But as of October 8,
2009, the Bank of England’s asset purchase statistics showed it had
not yet purchased any secured commercial paper.

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“The hope was that the Bank of England was finally announcing
support for leasing that would help SMEs fund the investments they
need to start growing again,” said Philip White, chief executive of
Syscap.

“These figures suggest otherwise. It does beg the question as to
whether the programme is ready yet, and if it is, why is hasn’t
started the purchases.”

Earlier in the year, Syscap already raised doubts over the
scheme, when initial plans were published, which proposed that the
Bank of England would buy commercial paper backed by equipment
leases with a maximum maturity of just nine months.

But, White explained, this would exclude the majority of
lease-backed securities, since the average equipment lease length
is over three years.

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“What is the point of the Bank of England announcing it is
extending quantitative easing to lease-backed securities and then
not buying them? The Bank of England’s excessively-tight
restrictions on what paper they will buy should be relaxed as a
matter or urgency,” White said.

Jason T Hesse