World leaders look for joint action on economy

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(China Daily)
Updated: 2008-10-13 07:15

In Paris, leaders of the euro zone countries were discussing the possible creation of a bank rescue package that would take Britain's initiative as a reference.

International Monetary Fund Managing Managing Director Dominique Strauss-Kahn (R) talks with World Bank President Robert Zoellick (L) at the start of the Annual Fall meetings of the IMF and World Bank in Washington, DC. Global finance chiefs gathered in Washington for crisis talks Friday in search of a solution to a growing financial firestorm as panic spread in global markets. [Agencies]

In London, big British banks were likely to announce plans to recapitalize today. The banks were in talks with the government and regulators to determine how much capital each needs from the 50 billion pounds ($86 billion) offered by Britain on Wednesday.

Germany was preparing a rescue package that could be worth up to $549 billion, including an injection of equity capital worth "double digit" billions into its banks, and guarantees for interbank lending.

Portugal said it will offer a financing line worth up to $27.45 billion to guarantee liquidity of its banks.

Under Australia's plan, all deposits in the country's banks, building societies and credit unions, would be guaranteed by the Australian government for the next three years, Prime Minister Kevin Rudd said.

In India, mutual funds have asked the central bank to lend them short-term cash via a repurchase facility after the global crisis virtually paralyzed the country's money markets, fund executives said.

Gulf Arab states also took measures, including a rare Saudi interest rate cut and a pledge by the United Arab Emirates to protect national banks and guarantee deposits.

China Daily - Agencies

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