FACTBOX - Euro zone pledges remedies for market crisis

(Reuters) - Leaders of euro zone countries held an emergency meeting on Sunday to discuss specific and coordinated pan-European measures aimed at shoring up the banking sector to avoid more failures.

The measures draw on a 400 billion pound package to shore up the banking system in Britain, by combining short and medium term remedies.

Here are the main actions they agreed to take:

UNBLOCKING THE MONEY MARKET

Banks are too afraid to lend to each other, fearing they won't get their money back. The cash central banks have injected into interbank markets is being hoarded by banks.

After coordinated rate cuts by central banks, Sunday's statement said euro zone governments hoped the central banks will continue to consider "all ways and means to react flexibly" -- a strong hint that more rate cuts would be welcomed.

The European Central Bank has agreed to see if it can make it easier to lend money to banks by widening the pool of collateral it receives from them. ECB President Jean-Claude Trichet said the bank already accepted private paper, but added it would study ways of broadening the system.

There was no clear sign that EU governments would be willing to act as guarantors for interbank lending, a provision some commentators say is key to restoring confidence.

STAKES IN BANKS