US Treasury Secretary Timothy Geithner has said he is extending the authority of a $700 billion financial bail-out to October 2010 even though the programme will cost less than expected.
Geithner said in a letter to congressional leaders that even though the economic situation was stabilising, it was prudent to continue the Troubled Asset Relief Program (TARP).
He said the extension 'is necessary to assist American families and stabilise financial markets' and 'maintain the capacity to respond to unforeseen threats'.
Geithner also said the US government did not expect to deploy more than $550 billion. 'We also expect up to $175 billion in repayments by the end of next year, and substantial additional repayments thereafter,' he added.
