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Australian Business Investment Partnership announced

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The federal government is set to establish a $4 billion Australian Investment Partnership to support the commercial property assets of viable Australian businesses that, without financing, would be forced to retrench thousands of employees.
These commercial property projects include shopping centres, office towers and factories under construction, as well as existing properties of that nature.
A release from the Prime Minister’s office describes the measure as a “temporary contingency measure to provide liquidity support to viable major commercial property projects in Australia”.
The commercial property sector employs approximately 150,000 people in Australia, many of whom are tradespeople.
According to Treasury, “Without action, a combination of weak demand and tight credit conditions could see up to 50,000 people in this sector lose their jobs, with flow-on effects to jobs in other parts of the economy.”

The initiative will be structured to minimise the exposure risk to Australian taxpayers, and will not allow the major banks to pass on any under-performing assets to the Australian Government. Safeguards will also ensure the banks continue to finance the projects supported. 

Published on: Wednesday, January 28, 2009

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