In the wake of the credit issues facing charities after the well-publicised problems with Iceland’s banks Charity Bank has contacted charity leaders this week to try and step into the breach. Chief Executive Malcolm Hayday wrote to the chief executives of NCVO, ACEVO and the Charity Finance Directors’ Group as well as the Charity Commission on 14 October, to advise that any charities struggling as a result of money locked up in accounts with Icelandic banks, may be able to receive support via a short-term working capital loan. Says Mike Hicks, Head of Lending at Charity Bank: “Any charity that has funds stuck with Icelandic Banks, and is watching its cash-flow slowly drying up, is unlikely to be an attractive proposition to a commercial bank in current market conditions. “We are part of the banking sector but as a charity we also want to be part of the solution. We should be delivering on our mission and offering assistance to those charities feeling the squeeze as a result of market failure.”
 
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27 October 2008
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