Tapsearch Com EditorRudd secures all bank deposits for next three years
October 14th 2008 01:16
Kevin Rudd has announced measures to secure all financial deposits throughout Australian banks, a move designed to shore up support in the national economy.
It was early reported that the Rudd Government would lift it's $20,000 threshold for guarantees.
The Prime Minister says the Government will now guarantee all deposits with Australian banks for the next three years.
The Government will also guarantee any money Australian banks loan from overseas.
The unprecedented move was made in response to global financial turmoil which is currently rocking the Australian market.
"This global financial crisis has entered a new and dangerous phase with real consequences for growth, for jobs and therefore for the future," Mr Rudd said.
The move will see billions in funds guaranteed by the Government, with a view to increasing support for the Australian economy and assisting in guiding the country through the current global downturn.
Treasurer Wayne Swan - who has been in Washington for talks with the US Government and other nations - said the action needed to be taken in unison with other countries.
"We are looking at broadening the scheme and we are getting feedback on what's occurring elsewhere in the world, because we can't operate separately from the rest of the world," he said.
"We have to have a scheme which is broadly compatible with the rest of the world and that's what I've been providing the feedback on."
There is now wide-spread acceptance that the current financial turmoil is among the worst in history, with the US stock markets recording eight straight days of losses.
Australia's S&P/ASX200 also suffered a more than 5% drop in value on Friday.
It was early reported that the Rudd Government would lift it's $20,000 threshold for guarantees.
The Prime Minister says the Government will now guarantee all deposits with Australian banks for the next three years.
The Government will also guarantee any money Australian banks loan from overseas.
The unprecedented move was made in response to global financial turmoil which is currently rocking the Australian market.
"This global financial crisis has entered a new and dangerous phase with real consequences for growth, for jobs and therefore for the future," Mr Rudd said.
The move will see billions in funds guaranteed by the Government, with a view to increasing support for the Australian economy and assisting in guiding the country through the current global downturn.
Treasurer Wayne Swan - who has been in Washington for talks with the US Government and other nations - said the action needed to be taken in unison with other countries.
"We are looking at broadening the scheme and we are getting feedback on what's occurring elsewhere in the world, because we can't operate separately from the rest of the world," he said.
"We have to have a scheme which is broadly compatible with the rest of the world and that's what I've been providing the feedback on."
There is now wide-spread acceptance that the current financial turmoil is among the worst in history, with the US stock markets recording eight straight days of losses.
Australia's S&P/ASX200 also suffered a more than 5% drop in value on Friday.
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