The Organization for Economic Co-Operation and Development has come out in support of the U.S. Treasury’s proposed plan to buy up illiquid mortgage securities.

“Announcement of the plan has already triggered a partial return to normality in U.S. and world financial markets. Such a recovery should continue as the plan’s operational, fiscal, and legal details are worked out in ongoing negotiations between the US government and Congress and are enacted as federal law,” said Angel Gurría, secretary-general of the OECD, in a statement indicating that the organization supports the adoption of the systemic rescue plan announced by the U.S. government last week.

“By putting an end to the deleveraging of financial institutions – which was occurring at alarming speed through capital losses and credit contraction – the systemic rescue plan contributes to stabilize the US and world economies,” he added. “This action will create the conditions for the much needed recapitalization of financial institutions, as they are able to shed troubled mortgage-based assets, raise new capital, regain the trust of counter-parties and thus re-establish ‘liquid’ conditions in bank lending.”

The OECD said it will continue to work closely with governments, central banks, and international institutions in proposing and supporting implementation of regulatory and supervisory reforms to address the main regulatory and market failures that have emerged during this crisis.