This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7666274.stm

The article has changed 9 times. There is an RSS feed of changes available.

Version 0 Version 1
European banks rescue plan agreed European banks rescue plan agreed
(10 minutes later)
Europe's leaders meeting at an economic crisis summit in Paris have pledged that no major financial institution will be allowed to collapse. European leaders meeting at an economic crisis summit in Paris have pledged that no major financial institution will be allowed to collapse.
They also pledged to guarantee loans between banks on a temporary basis, in order to address the liquidity crisis. They also pledged to guarantee loans between banks until 31 December 2009, so as to address the liquidity crisis.
The reluctance of banks to lend to one another has been a key problem of the financial crisis sweeping the globe.The reluctance of banks to lend to one another has been a key problem of the financial crisis sweeping the globe.
World governments have been racing this weekend to throw banks a lifeline before markets reopen on Monday.World governments have been racing this weekend to throw banks a lifeline before markets reopen on Monday.
French President Nicolas Sarkozy - the current European Union head - said leaders had agreed a framework in which individual countries would be able to inject capital into their own banks by means of preference shares. News of the rescue plan came from French President Nicolas Sarkozy - the current European Union head - after hours of talks between leaders of the 15 countries in the Euro single currency zone.
He said governments in Germany, France and Italy among others would be presenting their individual plans on Monday. UK Prime Minister Gordon Brown - not a member of the eurozone club - also attended parts of the talks.
Mr Sarkozy said leaders had agreed a framework in which individual countries would be able to inject capital into their own banks by means of preference shares.
He said governments in Germany, France and Italy among others would be presenting their individual plans on Monday, within the agreed framework.
"The crisis has over the past few days entered into a phase that makes it intolerable to opt for procrastination and a go-it-alone approach," he said.
Mr Sarkozy said the guarantees would be at commercial rates, and he stressed that what he called defective managers would be removed - and rash shareholders would not benefit from the public intervention.Mr Sarkozy said the guarantees would be at commercial rates, and he stressed that what he called defective managers would be removed - and rash shareholders would not benefit from the public intervention.
He said the plan addressed all aspects of the financial crisis. However, he did not say how much it would cost.