Bank of England warns of Brexit finance risks for Europe

Bank of England in the City of London on August 2, 2018. (AFP)

Europe’s financial system faces “potential risks” to its stability arising from a no-deal Brexit, the Bank of England warned Tuesday, as it extended its weekly lending facilities to include euros.

“Some disruption to cross-border services is possible and, in the absence of other actions by EU authorities, some potential risks to financial stability remain,” the BoE said in a statement.

Brexit talks with the European Union are making progress, a senior British government minister said Tuesday, as Prime Minister Theresa May seeks concessions from Brussels to help persuade lawmakers to back her deal in a series of crucial votes next week.

Britain is due to leave the EU on March 29 - the first country ever to do so - but British lawmakers have rejected a draft deal sealed by May and her EU counterparts in November. Both they and EU lawmakers must endorse any agreement.

“I think the signals we are getting are reasonably positive,” Foreign Secretary Jeremy Hunt told the BBC. “I don’t want to overstate them because I still think there’s a lot of work to do, but I think they do understand that we are being sincere.”

(With The Associated Press)

Last Update: Wednesday, 20 May 2020 KSA 09:59 - GMT 06:59