The organisation said the US governments purchase of bad debts would help re-establish ‘liquid’ conditions

The OECD welcomed the US government’s systemic rescue plan for the financial markets.

The US has authorised its central bank to issue up to $700bn of securities to finance the purchase of troubled mortgage-related assets from financial institutions that operate in the US.

On news of the plan there was a partial return to normality in US and world financial markets.

‘Such a recovery should continue as the plan’s operational, fiscal, and legal details are worked out…and are enacted as federal law,’ said Angel Gurría secretary general of the OECD.

The action would help re-establish ‘liquid’ conditions in bank lending, he said.