Washington: Central banks from major economies stand ready to take steps, including coordinated action, to stabilise markets as world economies prepare for a possible financial storm or public panic after cliffhanger elections in Greece this weekend.

Britain announced it would flood its banking
system with cash as the euro zone’s crisis casts a “black cloud” over the nation’s economy.

Officials from the G20 nations, whose leaders are meeting in Mexico next week, said that central banks were ready to take steps to stabilise financial markets —if needed — by providing liquidity and prevent any credit squeeze after Sunday’s election.

Canada is “ready to act” if the situation takes a serious turn for the worse or there is “an external shock,” a spokesman for Prime Minister Stephen Harper, said on Thursday.

The Bank of Japan left policy unchanged on Friday, keeping its financial firepower in reserve in case it is needed after the Greek election. China and India are both working on contingency plans, officials and sources said last week.

In Europe, authorities also laid plans for tackling turmoil such as if Greeks emptied their bank accounts should the SYRIZA party, which has promised to tear up the country’s bailout deal with the EU and the IMF, score a decisive victory on Sunday.