LONDON (Reuters) - Chancellor Alistair Darling said on Wednesday the government expected that taxpayer money being used for a huge bank rescue package would be repaid at the end of three years.

"The money will be in order of about 200 billion pounds," Darling told BBC radio. "That is effectively lent into the banking system and we'll get that money back and there's a fee charge for doing that.

"This is being lent into the whole system and we'll get that money back ... at the end of the three-year period."

Darling admitted that the treasury could not force banks to lend to each other more freely to ease the logjam in the system, but added: "What you can do is reduce the fear factor. That is what is stopping banks lending on a longer-term basis."

(Reporting by Kate Kelland, Golnar Motevalli and David Milliken)