FTSE 100 closes 11.8 points higher ahead of Greek elections

The FTSE 100 Index has closed 11.8 points higher at 5478.8 after reports that the US Federal Reserve, Bank of Japan and Bank of England were drawing up plans to cushion the blow of a Greek default.

The London market kept its head above water on hopes that central banks globally are ready to act if this weekend's election in Greece ultimately leads to the debt-laden country leaving the euro.

The pound was up against the euro at 1.23 as the single currency weakened ahead of Sunday's Greek poll, while sterling was also ahead against the US dollar at 1.56.

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Bank shares up after aid plan

Shares in UK banks have risen after the Bank of England and Treasury revealed plans for an emergency bank funding scheme to kick-start lending to households and businesses.