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| Down Under |
| Australia to help banks plug $49 bln funding gap |
| 2009-01-21 |
| CANBERRA, Jan 21 (Reuters) - Australia's government is ready to offer a lifeline to the country's banks, which face a funding shortfall of A$75 billion ($49 billion), Prime Minister Kevin Rudd said. Rudd said he was ready to take "whatever action is required" to fill the business funding gap caused by foreign banks' unwillingness to lend in smaller markets like Australia. Australia's big banks are highly profitable, but heavily reliant on foreign borrowing to meet demand. Rudd said A$75 billion in loans would fall due in the next two years. "If foreign banks do not roll over their share of these loans, it will be difficult for Australia's four major banks to fill the gap on their own," he said in Adelaide on Wednesday, according to Australian Associated Press. "The government stands ready to take whatever action is required to see Australia through the difficult times ahead." |
| Posted by:Steve White |