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Global bailout packages near $3 trillion

As the financial turmoil continues to batter world economies, the bailout packages from different governments globally is nearing the $3-trillion mark - about three times the size of Indian economy.

business Updated: Oct 12, 2008 12:35 IST

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 UK administration last week came up with a mammoth 500 billion pounds bailout package (about US$ 876 billion) primarily to shore up the fortunes of the nation's banking sector.

Earlier, the US government had moved the historic US$ 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 US and UK, 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.