Commercial property faces refinancing
Australia's big banks need government help to refinance $190 billion worth of loans to the commercial property sector says National Australia Bank. More than $70 billion of debt will require refinancing in the next two years, of which $50 billion is syndicated debt. Of that, over the past three years, foreign banks have taken on more than 60 per cent of syndicated debt.
NAB said that if banks and government do not act pragmatically, asset values could go into freefall. This in turn, would result in a flood of forced sales that will cause greater losses, business failures and increased unemployment.
Source: Sydney Morning Herald