BSF faring better than most PPPs in credit crunch

Building Schools for the Future is weathering the credit crunch storm better than most PPP programmes, according to PartnershipsUK chief, James Stewart.

However, he warned BSF players against complacency in the current climate.

In a speech to delegates at Partnerships for Schools' annual conference, Stewart said that on the downside, funding BSF deals had become more complicated as banks lost the confidence to finance deals on their own.

Stewart said the economic maelstrom meant lending capacity and liquidity had been reduced. But on the upside, he added, banks are still willing to fund PPPs, particularly BSF schemes.

Stewart commented: "The PPP market is benefitting from the flight to quality and BSF is faring the best as a long-term programme commanding loyalty from the banking community."