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In an effort to save UK banks that are bordering on collapse, Gordon Brown has announced a plan for the government to spend £50 billion on stakes in large banks as a part of a £500 billion bailout package for the banking sector. This will partially nationalise the banking sector and create a burden of around £2,000 per taxpayer.
Chancellor Alistair Darling has said he expects the Government to get this money back within three years. He has said that this deal is in response to “extraordinary times” and the goal is to get banks to start borrowing and lending again, in a climate in which the money markets have frozen and bankers are hesitant to resume normal activities for fear of more losses.
In the long run, this bailout is meant to help small businesses and homeowners get back on their feet as well, but it remains to be seen if it will provide the boost the economy needs amid the current global economic turmoil.
Alliance member organisations are working to alleviate the impact of the credit crunch and help people out of debt.
Campaigns such as Red2Black, run by Stewardship, encourage and support churches to tackle the debt issues in their communities. It provides information, resources and ideas in a relevant way.
Other organisations, such as Christians Against Poverty, aim to show God’s love in action by providing sustainable poverty relief through a national debt counselling service and offering hope and practical help to individuals and families in debt.
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