G7 countries likely to back US finance plan

G7 countries likely to back US finance plan

Paris: Governments of the G7 industrialised countries will discuss on Monday the US government’s plan to relieve banks of bad debt and will “very probably" support it, France’s finance minister said on Monday.

Christine Lagarde said on the French radio station RMC that the finance ministers and central bank governors of the seven countries would hold a telephone conference on Monday on the US plan.

“We will hold a telephone conference to examine and very probably affirm our support for the American plan," she said.

The US government announced the $700 billion plan late on Sunday in response to a crisis that has seen the collapse, takeover and rescue of several major US financial institutions.

The Group of Seven (G7) brings together the United States, Japan, Canada, Britain, France, Germany and Italy.