Canada says plan to aid banks needed now

TORONTO, Oct 10 (Reuters) - Canada Finance Minister Jim Flaherty on Friday said that the government's plan to buy up to C$25 billion in insured mortgages from banks is clearly needed now to help loosen the credit market.

Flaherty, speaking at a news conference in Ottawa, said the nation's banks "clearly think so." ($1=$1.16 Canadian) (Reporting by Richard Valdmanis; Editing by Theodore d'Afflisio)