Source: Xinhua

04-16-2009 16:23

Special Report:   Global Financial Crisis

BRUSSELS, April 15 (Xinhua) -- The European Commission said on Wednesday it had approved the extension of Britain's financial bailout plan by another six months to support the economy.

"The circumstances in the financial markets justify the extension which aims at underpinning lending to the British real economy," the commission, the European Union (EU)'s executive arm, said in a statement.

Following the financial crisis, the British government won approval from the commission last October for a financial bailout plan worth 300 billion pounds (447 billion U.S. dollars), which will guarantee up to 250 billion pounds and 50 billion pounds set aside for recapitalization.

The plan, which lasts for six months, was later modified by the British government in December.

Under the new approval, the British plan will be extended until October of 2009.

"The prolongation of the guarantee and recapitalization schemes should provide sufficient credit to the British economy and help business and households affected by the current credit crunch without undue distortion of competition," EU Competition Commissioner Neelie Kroes said.

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Editor:Qin Yongjing