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FACTBOX-Governments act to relieve financial crisis
October 13, 2008 / 4:14 PM / 9 years ago

FACTBOX-Governments act to relieve financial crisis

Oct 13 (Reuters) - Following are the latest measures taken by governments to limit damage from the financial crisis:

* BRITAIN - Britain waded in on Monday with 37 billion pounds ($64 billion) of taxpayers’ cash to recapitalise three major banks -- Royal Bank of Scotland (RBS.L), HBOS HBOS.L and Lloyds TSB (LLOY.L) -- in a move that could make the government their main shareholder.

* GERMANY - German Chancellor Angela Merkel presented a rescue package on Monday that will provide 400 billion euros ($543 billion) in bank guarantees and a further 100 billion euros in state funds to recapitalise its banks.

* FRANCE - French President Nicola Sarkozy said on Monday France would create two funding vehicles with up to 320 billion euros to guarantee bank lending and 40 billion euros to provide capital to banks in need.

*SPAIN - Spain passed laws on Monday to guarantee bank debt issued up to the end of next year with maturities up to a maximum of five year.

*AUSTRIA - Austia will provide up to 85 billion euros in guarantees and up to 15 billion euros in equity to support its banks, Finance Minister Wilhelm Molterer said on Monday.

* ICELAND - Reykjavik looked for new partners on Monday to dig it out of the crisis. A delegation headed for talks with Russia on an emergency loan, ministers said it might be time to consider joining the European Union and officials have also signalled that it might turn to the International Monetary Fund for assistance.

* INDONESIA - Indonesia raised its guarantee on bank deposits to head off a run on lenders and eased central bank rules so as to provide more liquidity.

* JAPAN - Tokyo said on Monday it was considering whether to guarantee all bank deposits, while the central bank said it may join further global efforts to boost dollar funding to strained money markets.

* SOUTH KOREA - South Korea said on Monday it would make it easier for funds and foreign banks to be top shareholders in local banks, in a move aimed at stabilising an industry rocked by the global financial crisis. Seoul cut interest rates last Thursday.

* THAILAND - The Bank of Thailand said on Monday it would be more active in the foreign exchange swaps market at a time of tight dollar liquidity.

* TAIWAN - Taiwan on Sunday said it would halve the daily limit that stock prices can fall and extend a ban on short selling.

*QATAR - Qatar launched a $5.3 billion plan to purchase bank shares on Monday.

*SAUDI ARABIA - Saudi Arabia on Sunday cut its key lending rate by 0.5 percentage points to 5 percent for the first time in nearly two years to give increased liquidity to its banks and cut their reserve requirements.

* UNITED ARAB EMIRATES - The UAE said on Sunday it will guarantee bank deposits, and on Monday clarified its position, saying it will cover deposits for three years, including those with foreign banks with core operations in the Gulf Arab state.

* NORWAY - Norway introduced new measures on Sunday to boost its banks’ liquidity including plans for up to 350 billion crowns ($57 billion) in new government bonds.

*PORTUGAL - Portugal’s finance minister said on Sunday that it will offer a credit line worth 20 billion euros ($27.5 billion) to guarantee the liquidity of its banks.

RECENT GOVERNMENT MOVES:

* AUSTRIA - Austria said on Wednesday it would give an unlimited guarantee on bank deposits of savers.

* AUSTRALIA - The Reserve Bank of Australia (RBA) injected A$2.63 billion ($1.8 billion) into the banking system on Friday.

The RBA provided banks with funding for up to a year on Thursday, extending the length of loans.

* BRITAIN - Britain said on Wednesday it would make 50 billion pounds ($87 billion) of new capital immediately available to retail banks and would extend 250 billion pounds in guarantees to help them refinance senior debt.

-- In unison with other major central banks, the Bank of England cut interest rates by half a percentage point. The unscheduled cut to 4.5 percent was the biggest for seven years.

* BAHRAIN - Bahrain, which pegs its dinar to the dollar, lowered its key interest rates on Thursday, tracking cuts by central banks around the world seeking to mitigate a global financial crisis that has sent markets into turmoil.

* BULGARIA - Bulgaria said it would raise the minimum bank deposit guarantee to 100,000 levs ($70,180), or 50,000 euros, from 40,000 levs.

* CYPRUS - Cyprus said on Wednesday it planned to raise its guarantee scheme for bank deposits to 100,000 euros ($136,300) from 20,000 euros.

* EUROPEAN UNION - European Union finance ministers agreed to guarantee bank deposits of up to 50,000 euros ($67,930), compared with 20,000 euros under current rules.

* FRANCE - France said it would set up a legal body so the state could intervene swiftly to acquire stakes in banks that ran into trouble in the financial crisis.

* GREECE - Greece on Thursday introduced legislation in parliament to raise the guarantee on bank deposits to 100,000 euros ($136,900) for three years.

* HONG KONG - Hong Kong trimmed its main interest rate on Thursday, effectively taking the total reduction this week to 150 basis points.

* ICELAND - Iceland, the country worst affected by the crisis, took control of the its biggest bank Kaupthing, the third such takeover in a week, and suspended all share trading.

* ITALY - Italy said it would deal with banks on a case-by-case basis and a package of measures the cabinet approved on Wednesday did not foresee a new bailout fund.

* NETHERLANDS - The Dutch government said on Friday it would set aside 20 billion euros ($27.5 billion) of capital to protect the country’s financial companies.

* RUSSIA - Russia’s lower house of parliament, the Duma, approved two anti-crisis packages worth a total of $86 billion on Friday. The packages made available $50 billion of state money to banks and companies who need to refinance foreign debt, and 950 billion roubles ($36.31 billion) to Russia’s main banks in subordinated loans.

* TAIWAN - State-run Bank of Taiwan said on Thursday it would cut its savings and deposit rates by 10 to 39 basis points after the central bank cut its benchmark discount rate to support economic growth during the global credit crisis. (Compiled by Dominic Evans; Additional writing by Carl Bagh, David Cutler and Greg Mahlich; Editing by Andrew Callus)

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