Government reported set to add detail to bank rescue plan

Tue Nov 18, 2008 1:14am GMT

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LONDON (Reuters) - The government is set to give more detailed terms of its proposed 37-billion-pound bail-out of HBOS, Lloyds TSB, and Royal Bank of Scotland, the Financial Times newspaper reported on Tuesday.

The FT said Finance Minister Alistair Darling would use a statement to parliament on Tuesday to clarify the circumstances in which the banks would be allowed to restart paying dividends.

Government aid to HBOS and LLoyds TSB is dependent on the two merging, and their plan to do so is well advanced.

($1=0.6705 Pound)

(Reporting by Dan Lalor; Editing by Clarence Fernandez)

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