Germany approves $674B bank bailout plan

BERLIN, Oct. 17 (UPI) -- A German official says President Horst Kohler and Parliament members approved a bank bailout plan Friday worth more than $674 billion.

German Economics Minister Michael Glos said the intervention plan that passed a parliamentary vote and was signed by Kohler was aimed at helping German citizens during the ongoing global economic crisis, Deutsche Welle said.

The financial official defended the plan that has come under fire since being proposed, saying it will bring hope to the country's troubled economy.

"We can solve the problems," Glos said.

German Chancellor Angela Merkel's administration would like the plan ready to go into effect by the time banks open Monday, Deutsche Welle said.

The plan focuses on lending guarantees for banking institutions throughout Germany and funds to be spent on buying risky assets and recapitalizing banks.

The allocated funds represent the maximum aid allowance by the German government and may not all be applied if the economic crisis begins to calm, the German broadcaster said.