Washington  - The US Senate is expected to vote later Thursday on whether to release the second half of a 700-billion- dollar bail-out package passed last year to keep the finance industry afloat.

The vote in the 100-member upper house is seen as a key test for president-elect Barack Obama, who is to take office on Tuesday. Both Democrats and Republicans have expressed hesitancy about releasing the remaining 350 billion dollars of the controversial programme aimed at halting a further economic slide.

The vote could foreshadow debate over Obama's own efforts to stimulate the economy with a proposal of tax cuts and government spending. He hopes to get Congress on board with a separate estimated 800-billion-dollar plan shortly after he takes office.

President George W Bush asked Congress Monday to sign off on the remaining 350 billion dollars of the finance bailout package after receiving a request to release the funds from Obama, who later told reporters he wanted to take office with the money in hand and ready to spend in case the finance industry took another hit.

Congress approved the rescue plan in October that allows the Treasury Department to pump money in the sector to stave off collapse after risky loans caused record mortgage foreclosures and a credit freeze.

The damage inflicted by the finance industry has been largely blamed for the recession inflicting the United States. (dpa)