Britain launches second financial rescue package
19 January 2009
A £300-billion rescue package has been announced by the British government in an attempt to get British banks lending again.
This is bailout of Britain's major banks just four months after it injected £37 billion into the sector.
The new plans, confirmed by Gordon Brown and Alistair Darling at Downing Street this morning, are aimed at freeing up blocked credit and encouraging the banks to start lending again.
Brown announced a new Bank of England fund, worth up to £50 billion, to buy high-quality government bonds in a bid to increase lending to the largest companies.
The fund will be used to buy assets from banks and other financial institutions to encourage the resumption of lending by the non-banking sector.
Further details of the fund will be spelt out by the Bank of England governor Mervyn King.