12 Oct 2008

Australia to guarantee all bank deposits, says Rudd

7:02 pm on 12 October 2008

Australia's Prime Minister Kevin Rudd has announced that the Government will guarantee all deposits in all Australian banks and other financial institutions for the next three years.

Mr Rudd has announced the measures in response to the global financial crisis.

He says the Government will also guarantee that any money Australian banks borrow from foreign institutions would be repaid.

Mr Rudd says the move will help Australia keep up with other governments and "are part of international measures designed to help unclog the arteries of the global financial system."

He says the measures are "critical for the international economy, critical for the Australian national economy and critical also for the household economy".

Australia has been asked to be part of a global action plan to unfreeze credit markets and stop the sell-offs on panicked sharemarkets.

The Australian treasurer, Wayne Swan, is attending a G20 meeting of finance ministers in Washington in the United States.