ID :
24124
Mon, 10/13/2008 - 13:23
Auther :
Shortlink :
http://m.oananews.org//node/24124
The shortlink copeid
Global bailout packages near USD 3 trillion
New Delhi, Oct 12 (PTI) As the financial turmoil continues to batter world economies, triggering the collapse of more number of financial institutions, the bailout packages from different governments globally is nearing the USD 3-trillion mark - about three times the size of Indian economy.
Continuing a spate of billion-dollar rescue plans, the U.K. administration last week came up with a mammoth 500 billion pounds bailout package (about USD 876 billion) primarily to shore up the fortunes of the nation's banking sector.
Earlier, the U.S. government had moved the historic USD 700 billion rescue plan, in response to the deepening credit crisis which has seen the fall of Wall Street icons like Lehman Brothers, Washington Mutual and the distressed sale of Merrill Lynch.
Till date, the Bush administration alone has announced bailout packages to the tune of over USD 990 billion.
Further, joining the likes of U.S. and U.K., Russia has
approved a host of measures estimated to be worth USD 86
billion to salvage the country's banks hit by the credit
squeeze.
Recent media reports said the Lower House of Russian
Parliament Duma has given the green signal for the billion-
dollar rescue plan.
It would entail making about USD 50 billion available to
banks and firms which have to refinance foreign debt, the
remaining amount would be given as loans to banks.
Besides, a handful of European countries have also 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 US.
Even though three Icelandic banks including Glitnir were
nationalised by the Iceland government, the exact worth of the
rescue package are not yet available.
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, at present at about USD 1.8 trillion, could soon be
triple 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 1
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 collapse of insurance giant Fortis and
the extension of 85 billion-dollar lifeline to AIG.
Continuing a spate of billion-dollar rescue plans, the U.K. administration last week came up with a mammoth 500 billion pounds bailout package (about USD 876 billion) primarily to shore up the fortunes of the nation's banking sector.
Earlier, the U.S. government had moved the historic USD 700 billion rescue plan, in response to the deepening credit crisis which has seen the fall of Wall Street icons like Lehman Brothers, Washington Mutual and the distressed sale of Merrill Lynch.
Till date, the Bush administration alone has announced bailout packages to the tune of over USD 990 billion.
Further, joining the likes of U.S. and U.K., Russia has
approved a host of measures estimated to be worth USD 86
billion to salvage the country's banks hit by the credit
squeeze.
Recent media reports said the Lower House of Russian
Parliament Duma has given the green signal for the billion-
dollar rescue plan.
It would entail making about USD 50 billion available to
banks and firms which have to refinance foreign debt, the
remaining amount would be given as loans to banks.
Besides, a handful of European countries have also 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 US.
Even though three Icelandic banks including Glitnir were
nationalised by the Iceland government, the exact worth of the
rescue package are not yet available.
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, at present at about USD 1.8 trillion, could soon be
triple 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 1
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 collapse of insurance giant Fortis and
the extension of 85 billion-dollar lifeline to AIG.
