LISBON, Oct. 12 (Xinhua) -- The Portuguese government Sunday announced the offering of 20 billion euros (27 billion U.S. dollars) as state guarantees for banks struck by the global financial crisis.
Finance Minister Fernando Teixeira dos Santos said, "In order to reinforce our financial system, the government has decided to launch an initiative guaranteeing the financial operations of credit institutions whose headquarters are in Portugal."
"The guarantee basically means that if a banking institution is incapable of meeting its commitments, the state will take responsibility," he said.
The minister also said the measure was carried out to facilitate banks' access to liquidity and create "conditions that allow them to finance economic activity."
The announcement came as leaders from the 15 eurozone countries are meeting in Paris for their first ever summit in an attempt to find a joint response to the financial crisis devastating Europe.
