Kevin Rudd warns of A$75 bln funding gap for Australian banks
21st Jan 09, 5:38pm
The Australian government looks set to either provide extra funding for Australian banks or to lend directly to corporates. This would replace a funding gap created by the exit of foreign banks from Australia who had lent heavily to Australian corporates. Prime Minister Kevin Rudd told reporters in Sydney the government would help plug an A$75 billion funding gap faced by Australia's banks, AAP reported. Rudd said A$75 billion of foreign loans to Australian companies 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," Rudd was quoted as saying. "The government stands ready to take whatever action is required to see Australia through the difficult times ahead," he said.