AUSTRALIAN BANKS WILL NOW HAVE ACCESS TO $105 BILLION TO LEND OUT TO SMALL AND MEDIUM BUSINESSES AS THE GOVERNMENT AND THE RESERVE BANK LOOK TO EASE CASH-FLOW PRESSURES CAUSED BY THE CORONAVIRUS CRISIS.
ACCOUNTANTS DAILY ARE KEEPING BUSINESSES IN THE KNOW, REPORTING ON THE NEW FUNDING AVAILABLE DURING THESE HARD TIMES, WHICH ARE AIMED AT ENSURING BUSINESSES COME OUT THE OTHER SIDE.
“OFF THE BACK OF MAKING AN EMERGENCY CASH RATE CUT TO A RECORD LOW OF 0.25 OF A PERCENTAGE POINT, THE RESERVE BANK HAS ANNOUNCED IT WILL SETUP A $90 BILLION TERM FUNDING FACILITY FOR BANKS TO SPECIFICALLY SUPPORT ITS SMALL-BUSINESS CLIENTS.
THE SCHEME WILL ALLOW AUSTRALIAN BANKS TO BORROW AN EQUIVALENT OF 3 PER CENT OF THEIR EXISTING OUTSTANDING CREDIT TO AUSTRALIAN BUSINESSES AND HOUSEHOLDS, WITH ACCESS TO ADDITIONAL FUNDS IF THEY PROVIDE MORE SUPPORT TO SMALL AND MEDIUM-SIZED BUSINESSES.”
TREASURER JOSH FRYDENBERG HAS ALSO PLEDGED $15 BILLION TO SUPPORT SMALLER LENDERS TO CONTINUE THEIR SUPPORT TO SMALL-BUSINESS CLIENTS.
THE COMMONWEALTH BANK OF AUSTRALIA HAS ALREADY RESPONDED, “WE ARE STRONGLY SUPPORTIVE OF THE RBA’S NEW TERM FUNDING FACILITY. WE INTEND TO PARTICIPATE IN THIS SCHEME TO THE FULLEST EXTENT POSSIBLE TO ACCESS LONG-TERM FUNDING AT HIGHLY ATTRACTIVE RATES TO HELP SUPPORT AUSTRALIAN HOUSEHOLDS AND BUSINESSES AT THIS TIME.” SAID CBA CHIEF EXECUTIVE MATT COMYN.