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Friday, June 15, 2012

Britain unveils stimulus to parry eurozone threat

Britain has stepped up its action against the eurozone crisis by agreeing to offer billions of pounds in cheap loans to British banks, in co-ordinated action that took markets by surprise.

The government and Bank of England (BoE) announced the surprise plan late Thursday in London in a bid to force commercial banks -- which are reluctant to lend amid the threat of a Greek exit from the eurozone -- to lend to businesses struggling amid Britain's recession.