Citigroup on Tuesday launched measures to help embattled borrowers remain current on mortgage payments and avoid foreclosures on their homes. The US banking giant announced "a series of initiatives designed to proactively help potential at-risk borrowers remain current on their payments and ultimately in their homes."

Confirming media reports, Citi will select 500,000 homeowners who are behind on their mortgage payments and threatened with losing their homes. Citi said it would renegotiate the payment terms on those mortgages, worth a cumulative 20 billion dollars in underlying mortgage balances.

The bank said it would focus particularly on borrowers in areas "that are likely to face extreme economic distress." Several of the new initiatives build on efforts it has taken in the past two years to help keep homeowners from losing their homes, the bank said.

Copyright Agence France-Presse, 2008