Govt may have to step in with foreign loans - Tanner
The federal government admits it may have to step in to help Australian banks refinance $75 billion worth of foreign loans to local business.
About $75 billion worth of syndicated loans, lent by foreign banks to finance large commercial properties such as shopping centres, are up for renewal in the next two years.
The government is concerned foreign funds will be pulled leaving Australia’s four major banks to fill the gap.
Federal Finance Minister Lindsay Tanner says the government is in talks with the banks to see how it can assist them in those circumstances.
“It’s not certain there will be a serious gap, but given what’s happening to many major foreign banks internationally, there is clearly a risk that we have to be concerned about,” he told ABC Radio.
“The question we are actively considering at the moment, discussing with the banks, (is) is there a way that the government can help them fill any gap if it emerges.”
AAP
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BBB January 23, 2009
If it is small to medium family owned private businesses, I can see the sense in this, they are the backbone of employement in Australia.
If it is large public companies- why- they have other alternatives , just look at the capital raising by Wesfarmers yesterday , the NAB , and the ANZ recently. Other too numerous to mention.
Come on!!!! The Federal Goverment needs to Look at the people who need real help .
What about Dairy Farmers, up to 30% real income drop ( not drought related) are they being helped ??? - not yet , and yet the whole dairy industry employs more people than the forgein owned car industry and they got 6 Billion assistance. We stand a real chance of seeing an INCREASE in dairy imports in the coming years. THE EU ARE ALREADY INCREASING SUBSIDIES TO THEIR DAIRY SECTOR
Come on Tanner and Swan, get your heads out of the posterior stop listening to lobbists and start to help where it is REALLY needed.