PARIS - HERE are the key points of the statement agreed on Sunday by the 15 leaders of the euro zone single currency bloc at a summit in Paris on the global financial crisis.

The leaders agreed that states would guarantee medium-term loans between banks that have recently been too nervous of exposure to new creditors, and also take steps to recapitalise and if necessary restructure failed banks.

The so-called 'credit crunch' caused by the failure of interbank lending has drained liquidity from the economy and threatened the survival of many banks and businesses.

'Further concerted action is urgently needed given the lasting freeze of the interbank market and the contagion from the financial crisis to the real economy.'

'This requires European Union and Euro area governments, central banks and supervisors to agree to a coordinated approach aiming at:

Ensuring appropriate liquidity conditions for financial institutions.

Facilitating the funding of banks, which is currently constrained.

Providing financial institutions with additional capital resources.

Allowing for an efficient recapitalisation of distressed banks.

Ensuring sufficient flexibility in the implementation of accounting rules.

Enhancing cooperation procedures among European countries.?

For an 'interim period' governments will guarantee interbank loans of up to five years 'on appropriate commercial terms' by a variety of means, including issuing securities, the statement said.

'The scheme will be limited in amount, temporary, and will be applied under close scrutiny of financial authorities until December 31, 2009.'

'Governments remain committed to avoid any failure of systematically relevant institutions, through appropriate means including recapitalisation. In doing so, we will be watchful regarding the interest of taxpayers and ensure that existing shareholders and management bear the due consequences of the intervention.' -- AFP