THE federal Government will guarantee all money deposits of any size for the next three years as a key step towards safeguarding the nation from the impact of the global financial crisis.
The government will:
- Guarantee all deposits of any size in any financial institution for the next three years. The government originally proposed that be $20,000 or less.
- Direct the Australian Office of Financial Management to purchase an additional $4 billion in residential mortgage backed securities. This will ensure the Australian mortgage market has access to sufficient funds for future operations.
- Guarantee all term wholesale funding by Australian banks operating in international credit markets. This means anyone lending money to an Australian bank has an absolute assurance their money is safe.
for three years - banks, building societies and credit unions,” he said.
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