Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

The Secretary of the Treasury has advised me that, based on his consultations with the financial regulators, this guarantee will be extended to Australian lending institutions as they seek to raise capital in international credit markets. Furthermore, he has indicated to me that the precise insurance premiums to be attached to each of them will be negotiated separately with those institutions and in doing so will be mindful of their general circumstances as far as their previous lending arrangements internationally. This is a prudent and proper approach to be taken. It is right that we take this action to stabilise the financial system for the future. These institutions have fine, first-class balance sheets as of today; they have fine, first-class balance sheets as indicated by the Australian prudential regulators; and, for the future, this measure has been necessary to ensure their future lines of credit from international credit markets. We believe this is an entirely appropriate course of action.

See this speech in context