Greece to shield banking system with 28 bln euros

ATHENS, Oct 15 (Reuters) - Greece is prepared to support its banking system with up to 28 billion euros ($38 billion) to help it overcome the credit crunch and contain the impact on the real economy, the country's finance minister said on Wednesday.

"With a combination of state guarantees, participation and increased liquidity that will reach 28 billion euros we will help the banking system to overcome the credit crunch," Finance Minister George Alogoskoufis told reporters after a cabinet meeting.

The measures are part of an EU-wide effort to deal with a global financial crisis that has pummelled stock markets and frozen interbank lending. (Reporting by George Georgiopoulos)