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Chancellor Rishi Sunak is set to rebuff City of London calls for a new state-owned body that would refinance tens of billions of pounds of coronavirus loans issued to UK companies. A task force called the Recapitalisation Group, led by trade body TheCityUK and advisory firm EY, has asked the government to create a new state agency to handle the expected mountain of unserviceable debt accumulated by companies through state-backed loan schemes. Politicians and economists such as Sajid Javid, Paul Myners and Jim O'Neill have also called on the state to intervene in order to support companies that have taken on extra debt because of the pandemic.
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