New Delhi: In their efforts to tackle the global economic crisis, the rescue packages announced by the governments across the world has crossed $10 trillion mark (about Rs50,00,000 crore) - an amount equivalent to nearly 10 times the total size of Indian economy.
The amount is believed to grow even bigger with the turmoil still being in expansion mode.
A lion’s share of about three-fourth of the worldwide bailout package of about $10.1 trillion has come from the world’s biggest economy, the US, whose total national debt has also incidentally crossed the $10 trillion mark.
The size of the entire Indian economy, where the impact of global crisis has been relatively less disastrous, pales at about one trillion dollar.
These bailouts, which have been prevalent in both developed and developing worlds due to the financial turmoil that turned severe after the fall of Lehman Brothers, have come in various forms of financial stimulus by the governments across the world - be it putting in fresh money into a crisis-ridden institution, bringing them under the government’s fold or other fiscal measures.
America set the ball rolling for such packages, with the world’s largest economy announcing $700 billion plan primarily to shore up the fortunes of the country’s battered financial institutions. Taking into account other rescue acts by the US, its total bailout plan runs into more than $7 trillion.
Various European nations together have come up with about $1.3 trillion in financial assistance apart from the European Commission urging the constituent countries to pledge nearly $254 billion.
Further, Germany has thrown lifelines to the tune of $60 billion to save the country’s leading financial firms - Dexia Bank and Hypo Real Estate - both of which were battered by the worsening economic turmoil.
While Hypo Real Estate received $50 billion, Dexia Bank got a lifeline worth about $10 billion.
Among the developing nations, China has announced a massive $586 billion plan to boost its economy and the funds would be mainly utilised for infrastructure projects.
Other major bailouts in recent times include $572 billion pumped by Ireland administration to strengthen the country’s banks, $150 billion pledged by Russia and $30 billion put in by the Poland government.
Meanwhile, the whopping seven trillion-dollar injected into the economy by the US, includes billions of dollars of term funding facilities, currency swap arrangement with various foreign governments and rescue of Wall Street giants.
With the economic turmoil continuing unabated, the Bush administration recently came up with another mega $800 billion plan, which would help in buying toxic mortgage assets, among others.
Further, the Federal government threw a lifeline of more than $300 billion to banking behemoth Citigroup. The rescue includes fresh capital injection to the tune of 40 billion dollar and guaranteeing assets worth $306 billion.
In the United Kingdom, the administration has announced injection of more than 100 billion dollar, with funds primarily utilised to rescue its banks.
Bradford & Bingley, which was on the verge of collapse received nearly $33 billion from the administration.