New York/London: Continuing their efforts to avert collapse of the financial system, three European economic giants Germany, France and UK today came up with bailout packages worth USD 773 billion, while US President George Bush promised more action to stabilise markets.
In possibly the first of its kind initiative in the Middle East region since the global financial crisis began, United Arab Emirates has reportedly decided to guarantee bank deposits for a period of three years.
As part of the co-ordinated efforts of Eurozone countries, the German administration announced a mammoth 480 billion Euro (US $654 billion) package for the nation's troubled banking sector.
The rescue plan is aimed at providing 80 billion Euro in fresh capital and the remaining 400 billion Euro in loan guarantee.
France too came up with a rescue plan worth 40 billion Euro (US $55 billion) to capitalise the country's banks.
UK Treasury today extended a lifeline to the tune of 37 billion pounds (US $64 billion) to the country's three banking majors -- Royal Bank of Scotland, mortgage lender HBOS and Lloyds TSB.
The swift actions by the European giants follows the assurance made by G-7 and G-20 nations, which pledged co-ordinated efforts to tame the spiralling global financial turmoil.
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Further, three banks in Europe Bank of England, European Central Bank and Swiss National Bank today said they would give dollars to commercial banks for short periods at fixed interest rates.
Asserting that he would pursue efforts to stabilise the financial markets, George Bush said that decisive action would be taken to restore credit and stability.
These efforts boosted markets worldwide with Asia and European markets gaining in the range of four to 10 per cent.
The American stocks opened on a strong note with the benchmark Dow Jones Industrial Average Index gaining over 300 points in the opening session.
After announcing the mega bailout package, German Chancellor Angela Merkel said the financial rescue plans would work only if it is complemented by changes in international rules.
Meanwhile, in a statement the UK Treasury said today's measures are aimed to "support stability in the financial system; to protect ordinary savers, depositors, businesses and borrowers; and to safeguard the interests of the taxpayer."
On providing funds to the three banking majors, the statement said," these institutions committed in aggregate to increase their total Tier I capital, either through their own actions or where requested, through support from the government's recapitalisation scheme in the form of preference and ordinary share capital."
In addition, banking giant Barclays Plc today said it will raise over 6.5 billion pound from investors to shore up its capital base and not call upon the government for emergency funding.
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