UK unveils financial support package for banks

LONDON (Reuters) - UK Treasury says it will give financial support to banks to provide sufficient liquidity in the short term.

* At least £200 billion will be made available to banks under the

special liquidity scheme to UK banks and building societies to

strengthen their resources permitting them to restructure their finances,

while maintaining their support for the real economy

* UK has informed the European commission of these proposals

* Ensure that the banking system has the funds necessary to maintain

lending in the medium term.

* In addition the government is establishing a facility, which will

make available Tier 1 capital in appropriate form (expected to be preference

shares or PIBS) to eligible institutions.

* Bank OF England next week will bring forward its plans for a permanent

regime underpinning banking system liquidity, including a discount window

facility

* Eligible institutions are UK incorporated banks (including UK

subsidiaries of foreign institutions) which have a substantial business in