US Treasury Secretary Timothy Geithner announced on Wednesday that government's $700 billion bailout program, which was set to expire at year's end, would be extended until next October.

Mr. Geithner said the Troubled Asset Relief Program, which was created in October 2008, would remain in place until October 3, 2010.

Mr. Geithner said the extension was crucial to support troubled lenders, small businesses, homeowners and financial markets.

In a letter to US lawmakers, Mr. Geithner wrote, “It is imperative that we maintain this capacity to respond if financial conditions worsen and threaten our economy.”

But, even with the extension of the program the Treasury Department does not expect to loan more than $500 billion.