You may or may not know, but the latest Bounce Back Loan performance figures were released just the other day, you will find a breakdown of those figures, itemized per lender, over in this section of the website > https://mrbounceback.com/updated-figures-on-bbl-defaults-arrears-and-guarantee-claims-put-in-and-paid-out/
However, when you look at those figures, you may miss something quite interesting, that being there are billions of Pounds not accounted for.
If you contact the Government for an explanation, and as you can imagine that is something I did, and I do know many journalists have done so too, they will try and bamboozle you with nonsense to try and deflect your attention away from the “missing“ £billions.
Let me explain those figures so you can see what I am rambling on about
- Total Value of BBLs Drawn Down is £46,628.12(million)
- Total Value of BBLs Repaid in Full by Borrowers is £5,573.11(million)
So, as it stands there is currently £41,055.01(million) in BBLs to be accounted for
- Total Value of BBLs On Schedule (Being Repaid as per the Agreement) £20,387.67(million)
That Now Leaves a total of £20,667.34(million) needed to be accounted for
- Value of BBLs in Arrears £1,972.16 (million)
- Value of BBLs in Default £531.62 (million)
- Value of BBLs awaiting a Guarantee payout to Lender £1,000.10 (million)
- Value of Guarantee Claims Paid Out to Lenders £6,891.41 (million)
That Still Leaves a total of £ 10,272.05 (million) needed to be accounted for
The official response from Government is “The outstanding balances and final amounts of the BBL scheme will not sum up to the total Drawn Value of that scheme, as it is not possible to take account of events which can reduce outstanding balances – for example: partial repayments of a loan, certain recoveries received in respect of a loan and loan amounts written-off by lenders.”
So lets do some further digging into the figures released to try and work out where that £10.272,050,000 is….
On the Trail of the Missing Dosh
As some people will have repaid something before going into arrears or default, we could scrape a few bob back and knock it off the missing billions by trying to work out what that figure is, and that is what I will now attempt to do, to try and make some sense of the missing money, by using the figures we do know.
The average BBL is worth £30,338, you get that by dividing the total BBL Drawn Down value (£46,628,120,000), by the number of BBLs issued (1,536,929).
The latest BBL performance figures up above show that as far as arrears go, some 85,224 BBLs are in arrears worth £1,972.16 (million), the average BBL value on that many BBLs is £2,585,525,712, so we could knock off around an additional £613,365,712 from the missing £10.272,050,000, as that may be the amount that borrowers repaid before getting into arrears based on the figures we have access to.
That still leaves a total of £9,658,684,288 needed to be accounted for
The latest BBL performance figures show that as far as defaults go, some 20146 BBLs are in arrears with a value of £531.62 (million), the average BBL value on that many BBLs is £611,189,348, so we could knock off around £79,569,348 from the £9,658,684,288, as that may be the amount that borrowers repaid before defaulting, based on the average figures we have access to.
That Still Leaves a total of £9,579,114,940 needed to be accounted for
The latest BBL performance figures show that as far as Lenders awaiting a Guarantee payout having slapped them in, (they can submit Guarantee claims every Quarter and they get their money on average in 12 days) some 35,638 BBLs are in such a state, the average BBL value on that many BBLs is £1,081,185,644, that figure looks more or less spot on with the figure up above “Value of BBLs awaiting a Guarantee payout to Lender £1,000.10 (million)”.
The latest BBL performance figures show that as far as Guarantee Claims Paid Out to Lenders go, some 223,171 BBLs have been settled and the banks have had their money back via the guarantee, the average BBL value on that many BBLs is £6,770,561,798, that figure looks more or less spot on with the figure up above “Guarantee Claims Paid Out to Lenders £6,891.41 (million)”.
Lets double check the repaid in full by borrower figures that are up above, £5,573.11(million) to see if any of the missing billions can be explained away that way, and as such if you work out the average value multiplied by the actual number of BBLs repaid in full, that being 177,279 you get £5,378,290,302 which looks more or less spot on too (ish).
That Still Leaves a total of £9,579,114,940 needed to be accounted for
The Missing Billions Explained
So where is the missing moolah. Well, as the Government have stated it is due to “partial repayments of a loan”, “certain recoveries received in respect of a loan” and “loan amounts written-off by lenders”.
They really should have some more detailed information on those values, as for what’s its worth, Lenders ARE writing off BBLs, I have seen plenty of examples of that.
Plus, with discounts being offered by some Lenders when a BBL goes into default and it is with their debt collectors for a certain number of months with the rest being written off, and with Disqualified Directors being able to haggle with Insolvency Practitioners on an agreeable repayment amount to put the matter of their BBL abuse to bed, we are talking about a huge amount of cash which is not obvious or included in the official BBL performance data..
Some lenders have also asked for their BBL Government Guarantee to be suspended or removed from some of the Bounce Back Loans they issued and paid out, or even had them yanked by the British Business Bank.
That happens when it is uncovered they should not have issued Bounce Back Loans for all manner of reasons which for example could be Know Your Customer failings, errors when processing BBLs etc, and as such their failings mean they no longer have a guarantee on those particular loans.
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