ANNOUNCEMENT 05 Dec 2008
In December 2008, the government of Australia announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Australian Government. Federal Register of Legislation. Car Dealership Financing Guarantee Appropriation Bill 2009. Text. Available at: https://www.legislation.gov.au/Details/C2009B00077
Australian Government. Federal Register of Legislation. Car Dealership Financing Guarantee Appropriation Bill 2009. Explanatory Memorandum. Available at: https://www.legislation.gov.au/Details/C2009B00077/Explanatory%20Memorandum/Text
On 5 December 2008, the Australian Treasurer announced the establishment of a Special Purpose Vehicle to provide liquidity to car dealer financiers facing financing difficulties as a result of the global financial crisis.
The SPV was established by the government conceived as a temporary financing trust. While the funds were to be provided by ANZ, Commonwealth Bank of Australia, National Australia Bank, and Westpac-as, it was the Australian Government who backed the fund with its sovereign AAA credit rating.
The fund advanced loans to new financiers until 30 June 2010.
The contingent liability for the Australian Government was estimated at AUD 550 million (USD 545 million approx).
The Car Dealership Financing Guarantee Appropriation Bill 2009 entered into force on 23 December 2008.