FACTBOX: Global stimulus rescue plans
(Reuters) - As world leaders arrive in Washington on Friday to discuss a response to the global financial crisis, some governments have already announced fiscal stimulus packages to help their economies withstand its effects.
Below are some details:
* AUSTRALIA:
-- The government has announced a A$10.4 billion ($6.8 billion) package of cash handouts and family benefits.
-- It is providing A$1.5 billion to boost the housing and home building markets and doubling the grant for first-time home buyers. They will now get A$14,000 from an original A$7,000.
* CHINA:
-- China approved a 4 trillion yuan ($586 billion) government spending package to bolster demand. The fiscal policy, which runs through 2010, will target investments in roads, railways and airports infrastructure.
-- China also confirmed a change in value added tax (VAT), which will allow companies to deduct the cost of capital equipment, saving them about 120 billion yuan a year.
* GERMANY:
-- The government has announced a package which will generate about 50 billion euros ($64.22 billion) in investment and contracts.
- A new lending program of up to 15 billion euros will be introduced for German state-owned development bank Kreditanstalt fuer Wiederaufbau (KfW) to strengthen its lending activities. KfW's infrastructure program for structurally weak local authorities will be raised by 3 billion euros.
-- Urgent investment in transport will be accelerated via a new program totaling 1 billion euros in both 2009 and 2010.
-- The government will make available an additional 200 million euros in 2009 for states to boost regional economies.
* HUNGARY:
-- Hungary announced plans for a 1,400 billion forint ($6.88 billion), two-year stimulus package to kick-start economic growth. The package does not involve new spending but a regrouping of existing funds to assist small and medium-sized businesses.
-- 680 billion forints will be allocated to provide lending guarantees primarily to SMEs and 260 billion forints will provide liquidity for lending. Continued...
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