govt may finance companies

This could work for us.

Borrow 50 million off govt ot keep the work ticking along. Until better days !!!

In the national strategic interest i say.



Rudd's credit lifeline
Peter Martin and Ben Schneiders
January 21, 2009
Page 1 of 3 | Single Page View
PRIME Minister Kevin Rudd has raised the prospect of another radical intervention in financial markets, saying the Government would be prepared to arrange loans for Australian businesses that have been denied finance by overseas lenders.

- Radical intervention possible
- Loans boost for businesses
- Ready for action to stabilise markets


Declaring that "when markets fail, governments must act", Mr Rudd expressed alarm at moves by cash-strapped foreign banks to scale back lending in Australia, in some cases declining to renew existing loans.

With about $75 billion in foreign loans falling due in the next two years, Mr Rudd warned of drastic consequences for individual firms and the economy if the foreign sources dried up.

"It would be difficult for Australia's four major banks to fill the gap on their own," he said. "When businesses cannot get loans and are not confident about the future, they can't or won't invest, meaning they can't create jobs and they can't grow."

Mr Rudd signalled the Government could provide guarantees on all borrowing by Australian firms that have been unable to roll over existing loans - probably in return for a fee.

The plan would be similar to, but on a much larger scale than, the recently announced scheme to ensure the flow of finance to car dealerships following the withdrawal of foreign lenders.

Flagging the plan in a speech in Adelaide, Mr Rudd said: "The Government stands ready to take whatever further action is necessary to stabilise financial markets."