United States of America plans to use part of its US$700 billion (S$1 trillion) of its bailout fund to boost banks’ capital.
EUROPE
Britain is offering 50 billion pounds (S$126 billion) in capital and will guarantee interbank lending by 250 billion sterling to help unfreeze wholesale markets it is also extending a Bank of England programme that swaps banks’ risky assets for government debt to provide 200 billion pound of cash to the system.
Germany was expected to guarantee interbank loans with 300 billion euros to 400 billion euros (S$798 billion) as well as provide banks with fresh capital in exchange for shares.
Norway plans to offer new government bonds worth 350 billion kroner (S$83 billion) to banks to help improve liquidity in the market. Also, the Norwegian Central Bank will issue fixed interest rate loans with two years maturity directed toward smaller banks.
Portugal said it will offer a financing line worth 20 billion euros (S$40 billion) to guarantee the liquidity of its banks.
ASIA-PACIFIC
Japan has already prepared a US$18 billion stimulus package, but last week Mr Aso asked his ruling party to consider compiling a new one.
Australia on Monday pumped in a further S$2.85 billion (S$2.77 billion) from its central bank in a bid to ease a grinding liquidity crisis. The country is also offering guarantees for deposits in banks.
India will inject 600 billion rupees (S$18.3 billion) into the financial system in two instalments, by cutting the cash reserve commercial banks must hold to 7.5 per cent.
New Zealand is offering a two-year guarantee for deposits in the country’s financial institutions. It has contingent liability of NZ$150 billion (S$131 billion).
Indonesia will guarantee up to 2 billion rupiah (S$300,000) in bank deposits. Starting Monday, commercial banks are also allowed to use performing loans as collateral to get short-term financing assistance from the central bank.
Taiwan has halved the daily limit that share prices can fall. It is also extending a ban on short-selling.
South Korea will allow conglomerates and other non-banking firms to buy a bigger stake in local banks to ease privatisation and guard against the global financial crisis.
MIDDLE EAST
Saudi Arabia has made ready SR150 billion (S$59 billion) to help the kingdom’s banks, if necessary.
United Arab Emirates government has said it will guarantee deposits and savings in local banks and interbank lending.
