Australian PM: Credit Flows Essential to Functional Economy

The Australian Prime Minister Kevin Rudd said on Thursday his government and banks were working together to ensure that enough credit was available for businesses to thrive.

Speaking at an Australia Day function in Melbourne, Rudd underlined the importance of restoring credit systems across the globe.

Credit flows are the blood that flows through the arteries of the economy to enable businesses to continue to invest or to sustain their existing investments, Australian Associated Press quoted Rudd as saying.

The availability of credit is essential to the health of business, it's essential therefore to the health of households and the health of employment, he added.

Rudd said the government was working in partnership with major banks to address the challenges ahead.

As the global financial crisis affects banks around the world, some foreign banks are seeking to reduce their exposures.

He said the Australian government in partnership with the major banks had been working through this challenge in recent weeks and months.

We intend to do whatever is necessary to continue to support the flow of private credit to the Australian economy, he stressed.

Source: American Shipper