UK banks commit to $15 billion lending package to help firms expand abroad

LONDON, Jan 26 (Reuters) - Britain's five leading banks - NatWest, HSBC, Barclays, Lloyds and Santander - on Monday committed to lending a combined 11 billion pounds ($15 billion) to help firms invest and expand into new international markets, the government said.

The announcement comes as Prime Minister Keir Starmer's Labour Party, struggling in opinion polls, searches for ways to generate growth from Britain's relatively sluggish economy, and weeks after the Bank of England urged commercial banks to lend more.

"Strengthening Britain’s export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets," business and trade minister Peter Kyle said in a statement.

The government said lending capacity would be available immediately and be drawn entirely from the banks' own balance sheets. UK Export Finance, the government's export credit agency, will guarantee up to 80% of eligible loans issued by each bank.

However, there is no guarantee the banks will lend the full amount and firms are likely to still try and ensure any such money loaned is on a commercial basis and will be repaid.

($1 = 0.7308 pounds)