Mr. Sebastian Barnes:

We have not looked specifically at the SME sector. However, there is a logic to what the Deputy said in the sense that some of these legacy issues from the previous crisis that were still around when we went into this will make it more complicated to recover. The main thing that is striking is that, compared to the previous downturn, we think it will be much less long lived. It has been much more violent to start with. Within a process of a few weeks, the economy was locked down. One could not go to a shop or a restaurant because they were literally closed by Government order. That is very different to what happened in the financial crisis.

During the financial crisis, there was a big drop in demand. While it was not as sudden as this, it was ultimately much more longer lasting. It is that point which is going to cause many difficulties for firms, which literally have not been able to operate for a couple of months and may not be able to do business for a while. That is going to put huge pressure on the SME sector in particular, which often struggles to get access to finance. Their balance sheets are often not in such a good position, partly because of past issues, but also just because that is how the SME sector works. It is a concern for the recovery.