(PARIS) - Fifteen EU countries meeting in Paris will guarantee new medium-term loans between private banks in a bid to end the credit crunch, according to a draft statement from the summit seen by AFP on Sunday.

This offer would stand for an "interim period" and would see governments underwriting new loans of up to five years "on appropriate commercial terms" by a variety of means, including issuing securities, the statement said.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.