British government partially nationalized problematic banks

The British government announced on Wednesday a support plan for the British banking system which deals with a 50 billion sterling pound re-capitalization and a credit line of 200 billion sterling pounds offered by the Bank of England, AFP informs.

Before all stocks exchanges opened, the British Treasury announced that eight big banks among which Abbey, Barclays, HBOS, HSBC confirmed their participation at the re-capitalization plan. British PM Gordon Brown decided to launch a safeguarding plan of the British banking system after a disastrous day at the stock for 3 biggest banks.

The British newspapers wrote about the liquidity shot of 64 billion euro planned for these days, in an attempt to relaunch inter-banking loans that are currently blocked.