October 21, 2008

LONDON (Reuters) – Japan and France offered a helping hand to their banks on Tuesday and the International Monetary Fund (IMF) prepared to intervene in financial trouble spots in several corners of the globe. Despite tentative signs investors were beginning to regain confidence, the IMF was poised to help Pakistan -- which said it needed up to $15 billion -- Iceland, Ukraine and others prevent systemic meltdowns

Shares in France's top banks rose sharply after the French government said it would lend 10.5 billion euros ($14.12 billion) to boost their capital reserves. Paris last week earmarked 360 billion euros as part of an international effort to help banks survive the worst financial crisis since the Great Depression almost 80 years ago.

In Japan, Economics Minister Kaoru Yosano said the country's big banks should also be entitled to injections of public funds if needed, as the government considered recasting a law that had been aimed mainly at recapitalizing regional banks to boost financing to credit-starved small firms.” I can't see any reason why big banks should be discriminated against," Yosano told a news conference. Japanese banks have avoided risky credit products but sharp share price falls in recent weeks have hit their balance sheets.