22 Jan 2009

Australia considering crisis fund

1:57 pm on 22 January 2009

Australian Treasurer Wayne Swan says the federal government is considering a crisis fund to prop up business following any withdrawal of foreign banks from the Australian market.

Mr Swan said the issue was under consideration, but there had not yet been any such withdrawal of foreign banks.

However, he said there have been indications "that there may be the possibility that some foreign banks will withdraw their funding in the Australian market."

If that occurs, he says the government "will take any measure that is responsible to ensure the flow of credit to Australian businesses and Australian investors to support Australian jobs."

Such a fund would reportedly be partly funded by the sale of Commonwealth bonds and include some money from banks.