UK expands Bank of England overdraft over virus crisis

Britain has expanded its overdraft with the Bank of England to help weather coronavirus disruption, it said Thursday.

The government's "ways and means facility" -- effectively its overdraft account at the BoE -- is being used to temporarily help finance spending on COVID-19 emergency measures, the Treasury and central bank announced in a joint statement.

A limit of 370 million pounds (USD 455 million, 420 million euros) has been extended by an undisclosed amount, while the government has pledged stimulus worth billions of pounds.

"HM Treasury and the Bank of England have agreed to extend temporarily the use of the... long-established Ways and Means facility," said a joint statement.

"As a temporary measure, this will provide a short-term source of additional liquidity to the government if needed to smooth its cashflows and support the orderly functioning of markets, through the period of disruption from COVID-19."