A spokesperson from the German finance ministry confirmed the price tag, which includes up to €400 billion worth of guarantees for banks, and another €100 billion to recapitalize banks.

The ministry said banks will be able to draw upon a financial market stabilization fund up until the end of 2009.

The goal is "to create a viable instrument that will overcome the current liquidity shortages in a timely fashion and strengthen the stability of the German financial market," the ministry said in a statement.

Speaking on Monday, German Chancellor Angela Merkel said the package is expected to help interbank lending. She also said financial issues will be discussed once again at the upcoming G8 meeting in November.

The package is expected to be voted on in Germany's two houses of parliament by the end of the week.

By Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Sarah Sussman, This email address is being protected from spam bots, you need Javascript enabled to view it

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