FACTBOX: Financial rescue plans by G7 and other countries

Thu Oct 23, 2008 3:54am EDT
 
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(Reuters) - Governments around the world are announcing rescue plans to support banks and unfreeze credit markets.

Over $4 trillion has been committed to bailing out the financial sector, while regulatory reforms loom and signs of a worldwide recession mount.

Below are details of plans announced by governments (in alphabetical order):

G7 COUNTRIES:

FRANCE - 360 billion euro ($462.8 billion)s

- BANK CAPITAL: Up to 40 billion euros available to help recapitalize banks. State to lend 10.5 billion euros to France's top six banks by year-end. Banks to pay interest rate of more than 400 basis points over risk-free rate.

- GUARANTEE INTERBANK BORROWING: Up to 320 billion euros to be made available to guarantee bank lending. The fund will guarantee bank paper issued before Dec 31, 2009, and lasting up to five years.

GERMANY - 500 billion euros ($642.8 billion)

- BANK CAPITAL: A maximum of 80 billion euros is available for recapitalizations, while 20 billion is set aside as a provision for the guarantee offer. Each bank in the scheme will be allowed recapitalization of up to 10 billion euros, and the fund will assume risk of up to 5 billion euros per bank.

- GUARANTEE INTERBANK BORROWING: The government will provide 400 billion in guarantees which will run until December 31, 2009.

ITALY

- LIQUIDITY: The Italian government said it is ready to swap up to 10 billion euros in government bonds in temporary exchange for other forms of debt held by banks.

- BOND GUARANTEES: The Treasury will guarantee new bonds issued by banks until Dec 31, 2009, with a maturity of up to five years.

JAPAN

- LIQUIDITY: BoJ to increase size/frequency of its commercial paper repo operations and temporarily broaden (until April 2009) the range of asset-backed commercial paper eligible for its market operations.

- BANK CAPITAL: Existing law allows for recapitalization of regional banks to encourage lending to small firms. Economics minister says big banks should be able to access public funds as well.  Continued...

 

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