ID :
22785
Mon, 10/06/2008 - 06:16
Auther :
Shortlink :
http://m.oananews.org//node/22785
The shortlink copeid
Global bailout package size nears USD 2 trillion
New Delhi, Oct 5 (PTI) With financial institutions falling prey one after another to the global credit crisis, the bailout packages announced by various governments across the globe are inching towards two trillion-dollar mark -- an amount nearly double the size of Indian economy.
With the U.S. Congress giving nod to USD 700-billion aid
for troubled financial institutions in the country, the U.S.
government alone has announced a total package worth about 990
billion dollars.
Besides, a handful of European countries have already
announced packages worth a similar amount in efforts to save
their troubled financial entities.
There are expectations for more such instances of helping
hands coming from the governments in Europe as the crisis is
said to be fast spreading in the region after a full-blown
blast in the U.S.
However, nothing of this sort is expected in India as the
country and its financial institutions have remained mostly
insulated from any direct impact of the crisis.
Still, the collective bailout packages in the U.S. and
Europe, currently at about 1.8 trillion dollars, could soon be
double the size of one trillion-dollar Indian economy.
India's G.D.P. is estimated at Rs 46,93,602 crore for the
latest fiscal 2007-08, which stands at just over USD one
trillion based on the current exchange rate of about Rs 46.8
to a dollar.
From America to Europe, the deepening financial turmoil
has seen the fall of big names, especially in the banking
industry, such as the bankruptcy of Lehman Brothers, firesale
of Merrill Lynch to Bank of America and the extension of 85
billion-dollar lifeline to A.I.G.
The U.S. takes the top spot with bailout packages of 990
billion dollars so far, followed by Ireland government which
put in around 572 billion dollars as part of guarantee for
liabilities of the country's banks. The proposal covers
retail, commercial and inter-bank deposits and covered bonds,
among others.
Elsewhere in Europe, the German administration last week
pumped in 50 billion dollars to shore up the fortunes of
mortgage lender Hypo Real Estate, while Belgian government
invested 16 billion dollars in banking and insurance major
Fortis.
In another rescue act, another Belgian major Dexia was
saved by the country's government by throwing a lifeline to
the tune 9.2 billion dollars.
The U.K. economy also had a victim of the credit crunch,
with the government putting in about 32.5 billion dollars in
troubled British lender Bradford & Bingley.
Moreover, Iceland administration injected 864 million
dollars as part of improving the credit position of the
country's leading lender Glitnir.
Among investments made by the U.S. are the 85
billion-dollar bailout of A.I.G. and the rescue of Freddie Mac
and Fannie Mae, estimated to be worth over 200 billion
dollars.
Besides the government's aid, some large private
investors have also chipped in with billions of dollars as
investment in Wall Street giants.
Legendary investor Warren Buffett has pumped in five
billion dollars to salvage Goldman Sachs and another three
billion dollars in diversified conglomerate General Electric.
With the U.S. Congress giving nod to USD 700-billion aid
for troubled financial institutions in the country, the U.S.
government alone has announced a total package worth about 990
billion dollars.
Besides, a handful of European countries have already
announced packages worth a similar amount in efforts to save
their troubled financial entities.
There are expectations for more such instances of helping
hands coming from the governments in Europe as the crisis is
said to be fast spreading in the region after a full-blown
blast in the U.S.
However, nothing of this sort is expected in India as the
country and its financial institutions have remained mostly
insulated from any direct impact of the crisis.
Still, the collective bailout packages in the U.S. and
Europe, currently at about 1.8 trillion dollars, could soon be
double the size of one trillion-dollar Indian economy.
India's G.D.P. is estimated at Rs 46,93,602 crore for the
latest fiscal 2007-08, which stands at just over USD one
trillion based on the current exchange rate of about Rs 46.8
to a dollar.
From America to Europe, the deepening financial turmoil
has seen the fall of big names, especially in the banking
industry, such as the bankruptcy of Lehman Brothers, firesale
of Merrill Lynch to Bank of America and the extension of 85
billion-dollar lifeline to A.I.G.
The U.S. takes the top spot with bailout packages of 990
billion dollars so far, followed by Ireland government which
put in around 572 billion dollars as part of guarantee for
liabilities of the country's banks. The proposal covers
retail, commercial and inter-bank deposits and covered bonds,
among others.
Elsewhere in Europe, the German administration last week
pumped in 50 billion dollars to shore up the fortunes of
mortgage lender Hypo Real Estate, while Belgian government
invested 16 billion dollars in banking and insurance major
Fortis.
In another rescue act, another Belgian major Dexia was
saved by the country's government by throwing a lifeline to
the tune 9.2 billion dollars.
The U.K. economy also had a victim of the credit crunch,
with the government putting in about 32.5 billion dollars in
troubled British lender Bradford & Bingley.
Moreover, Iceland administration injected 864 million
dollars as part of improving the credit position of the
country's leading lender Glitnir.
Among investments made by the U.S. are the 85
billion-dollar bailout of A.I.G. and the rescue of Freddie Mac
and Fannie Mae, estimated to be worth over 200 billion
dollars.
Besides the government's aid, some large private
investors have also chipped in with billions of dollars as
investment in Wall Street giants.
Legendary investor Warren Buffett has pumped in five
billion dollars to salvage Goldman Sachs and another three
billion dollars in diversified conglomerate General Electric.
