Ruddbank won’t save bad business
National Australia Bank's senior executive Ahmed Fahour will head the federal government's Australian Business Investment Partnership, which will help refinance viable commercial property companies threatened by the withdrawal of foreign banks. The ABIP will be funded by $2 billion in taxpayer loans and $500 million contributions from the four major banks.
"It will not lend to companies with bad assets, it won't refinance any loans from the Big Four banks, and it will only extend a loan when the Big Four agree," he said. "And it's not going to stop real estate prices falling. Its job is to ensure viable firms don't have to do fire sales of good assets."
Source: The Australian