Monetary Policy Statement for the first half of 2008

Author: Monetary Policy Departament
Printed on: 08.10.2008
Production date: 08.10.2008
Material category : Periodic Publications / 6-month Monetary Policy Declaration
The recent developments attest to further deepening of the U.S. financial crisis, peaking in the last weeks with the collapse of one of the largest investment banks Lehman Brothers. Prior to this startling failure, the two U.S. mortgage giants, Freddie Mac and Fannie Mae, were subject to an unprecedented and costly rescue plan designed by the U.S. Treasury Department. In fact, this has only been one of the U.S. authorities' interventions, followed by a number of other actions, involving the AIG insurance company, Merryl Lynch and in particular the plan announced on 21 September 2008 for the creation of a 700 billion dollars fund for the purchase of mortgage-related assets.