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FACTBOX-Industry bailouts agreed or called for

Published 10/28/2008, 10:26 AM
Updated 10/29/2008, 06:40 AM
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GENEVA, Oct 28 (Reuters) - Bailouts for industrial sectors hit by the financial crisis are open to challenge under international trade rules, lawyers say.

The following lists major measures called for or agreed to help industry:

* A $10 billion rescue package to support a merger between the biggest and third biggest U.S. carmakers, General Motors Corp (GM) and Chrysler, mostly owned by Cerberus Capital Management LP.

* A call by congressmen from Michigan, the home of the Detroit-based carmakers, for a bailout for all three U.S. manufacturers, including second-place Ford Motor Co.

* The U.S. Congress approved $25 billion in low-interest loans last month to GM, Ford and Chrysler to help them meet a federal target for more fuel-efficient cars.

* French President Nicolas Sarkozy and Italian Prime Minister Silvio Berlusconi have called for similar help for European carmakers from their governments.

* Sarkozy also wants to create European sovereign wealth funds to take stakes in companies hurt by the crisis and protect them from "predators".

* Italy is considering providing tax incentives to stimulate purchases of cars and kitchen appliances.

* Russia -- not a member of the World Trade Organisation -- has said will help crisis-hit sectors including real-estate and retailers. (Reporting by Jonathan Lynn; Editing by Myra MacDonald)

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