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NHS Forced to Borrow Money at Rates of 10 percent

Rising debts are forcing NHS to borrow money at rates of 10 percent from NHS banks. These rates are much higher than those offered by other street banks. Traditionally the NHS// in collaboration with the Department of Health lent money with no charge.

However from April the charge on borrowing could be 10% while those NHS trusts that invested their profits could receive interest of about 20%. The proposal has brought about wide criticism from several trusts as this would ultimately penalize those institutions that were least able to pay.

The move follows close on the heels of several job cuts among the nursing staff in order to stem mounting debts. Close to 4000 job cuts have been reported across the country within the past few weeks.

The latest job cuts announced by NHS seemed to target specialist nurses specialized in conditions like diabetes, epilepsy and multiple sclerosis.

All NHS organizations across the country are expected to be covered by the proposed banking model.


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