LONDON - THE Bank of England will announce a plan to swap government bonds for commercial banks' mortgage debt, Britain's Finance Minister Alistair Darling said on Sunday.

The move is an attempt to break a lending squeeze gripping the home loan market.

Pressure has been growing on the British government and the Bank of England to do more to resolve a mortgage debt crisis threatening to slam the brakes on the economy and which is contributing to a slump in support for Prime Minister Gordon Brown.

Mr Darling told the BBC that he would make an announcement to the British parliament on Monday afternoon. -- REUTERS