Canberra to give ANZ $1.3 billion loan guarantee to keep Pacific branches afloat.
Australia will provide ANZ with a decade-long loan guarantee of A$2 billion ($1.26 billion), to ensure the bank maintains the branch network across the Pacific, a move seen as a diplomatic win amid growing regional competition with China.
The federal government considers the likelihood of the guarantee being called is “very low”, and the agreement stipulates an annual fee payable by ANZ to Canberra.
Under the terms of the deal, ANZ will also invest an additional A$50 million into its Pacific banking operations to support ongoing services and expand its digital banking capabilities, the bank said in a statement on Friday.
The move comes as Australia and the United States intensify efforts to bolster financial connectivity in the Pacific.
In July 2024, officials from both nations pledged to enhance banking services in the region, as policymakers gathered with regional leaders to address the challenges Pacific Island countries face in maintaining access to global financial systems.
Source: MARKETSCREENER
