Britain is reportedly set to guarantee ‘toxic debt’ worth up to £200 billion (€221bn) in a second bank bailout.
Prime Minister Gordon Brown indicated that he will put forward a package tomorrow designed to encourage banks to restart lending.
Government officials and bank chiefs held talks over the weekend to find a solution to a credit freeze which is hitting small businesses and homeowners.
Speaking in Egypt, where he attended an international summit on the Gaza crisis, Mr Brown said he hoped the new moves would make it easier for businesses and households to obtain credit.
