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German parliament agreed to allocate banks 500 billion euros

Financial newsThe lower chamber of German parliament approved the plan to support German banks. For help financial institutions planned to send 500 billion euros.

It should be noted that the plan has not received unqualified support in parliament. During his acceptance voted 476 deputies, while 99 were opposed. Another member of the lower house chose to abstain. Now a bill approved by Chancellor Angela Merkel, must receive approval in the upper house of German parliament.

According to the plan, the state will provide guarantees of 400 billion euros in the interbank lending. The main objective of the plan - help improve the European financial system. In doing so emphasized that the amount allocated is very high, but because without the extra need to spend it is not recommended.

Recall that on Friday a similar plan was approved by the Government of France. To support the banking system in Paris, decided to allocate 360 billion euros.

Source: Associated Press
Date: 17.10.2008 [200]
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