WASHINGTON - THE US Treasury said on Friday it would guarantee US money market funds up to an amount of 50 billion dollars (S$71.7 billion) in order to ensure their solvency.

'Money market funds play an important role as a savings and investment vehicle for many Americans,' the Treasury said in statement.

'They are also a fundamental source of financing for our capital markets and financial institutions. Maintaining confidence in the money market fund industry is critical to protecting the integrity and stability of the global financial system,' the statement said.