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London: The UK government has announced details of a rescue package for the banking system worth at least £50bn.

It will make extra capital available to eight of the UK's largest banks and building societies.

In return for the funding, the government will receive preference shares in those institutions.

A further £200bn will be made available by the Bank of England for short-term borrowing to provide liquidity to banks and building societies.

UK Chancellor Alistair Darling launched a drastic rescue of Britain's high street banks, close on the heels of the US $700 billion bailout launched by the US.

UK Prime Minister Gordon’s Brown’s plan is dubbed as a part-nationalisation plan with £50 billion of taxpayers' money.

The Bank of England also chips in to ensure that the banks have enough cash to run their day-to-day activities to help reassure savers and repair the paralysed credit markets.

Under the Special Liquidity Scheme, the Bank of England will make available at least £200 billion to banks.

Seven banks and Britain's biggest building society have signed up for up to £50 billion of additional finance from the government.

They have signed these deals in exchange for the taxpayer taking preference shares, ordinary shares or permanent interest bearing shares (PIBS).

UK is a member of the European Union which held an emergency mini-summit on Saturday October 4 and Sunday.

The leaders of the EU countries discussed plans to rescue their respective economies and banks from the huge economic meltdown.