World financial crisis

Europe reacts to financial crisis

Article published on the 2008-10-10 Latest update 2008-10-10 16:17 TU

Spanish Prime Minister José Luis Rodriguez Zapatero agrees 30 billion euro bank bailout plan
(Photo: AFP)

Emergency measures are being taken across the globe to stabilize the effects of the global financial crisis. The Spanish government has approved a 30 billion euro bank fund, whilst the Danish parliament has passed a bill worth 4.37 billion euros to help banks and their customers.

Russia's Prime Minister Vladmir Putin has said that the government plans to invest up to 6.6 billion dollars in its markets in 2008 starting next week.

"For a long time, economic players, a majority of Duma deputies, experts have been asking the government to devote a portion of its available resources to buying Russian shares rather than foreign ones," Putin said.

Unlike government rescue plans in the United States the bank fund in Spain will not be used to buy "toxic" assets, but will instead focus on buying mortgages and assets with the highest ratings.

Spain faces the risk of recession as the property market is hit by rising interest rates, domestic oversupply and the international credit crunch.

Under Denmark's bailout plan, the country's 140 banks will inject the equivilent of two per cent of the country's GDP into a fund over the next two years.

The fund will be used to assist financial institutions in difficulty and guarantee the deposits of customers.