Government Credit Easing scheme

George Osborne, the Chancellor of the Exchequer, announced a plan yesterday to ease the difficulties SME's are having, known as Credit Easing.

The basic idea is for the Government to buy billions of pounds worth of corporate bonds to replace funds not coming from the Banking sector, under fire from all sides at the moment and maybe about to take a further hit from a partial Greek default.

How the smaller company would issue bonds is not that clear at the moment, so it might not filter down to the typical SME but any good news is appreciated, so let's see how it works in due course.

Bond purchases and issuance are usually the domain of the big guys and it is the minnows that are struggling for finance, so will it filter down far enough?