Canberra to guarantee an Anz loan of $ 1.3 billion to maintain Pacific branches on the surface
(Reuters) -Australia Anz will provide a decade of a loan guarantee in the amount of two billion dollars ($ 1.26 billion), to ensure that the bank holds a network of branches across the Pacific, which is a move considered by a diplomatic victory in the midst of growing regional competition with China.
The federal government considers the likelihood that the guarantee will be called “very low”, and the agreement provides for the annual compensation that Anz pays Canberri.
According to the terms of the agreement, Anz will also invest an additional $ 50 million in his Pacific banking operations to support current services and expand his ability to digital banking, Bank states on Friday.
This move comes because Australia and the United States intensify the efforts to enhance financial connection in the Pacific.
In July 2024, officials of both countries have pledged to improve banking services in the region, as policy creators gathered with regional leaders to get rid of challenges that Pacific Island countries in maintaining access to global financial systems.
Many small Pacific states face the consequences of Western banks that have completed long -term relations and final operations, which seriously limited access to accounts to the Denominated US dollars. This void created the opportunity for Chinese financial institutions to expand their presence in the region.
Executive Director Anz, Shayne Elliott, told Reuters in July 2024 that the Pacific Banks’ operations – although the largest network in the region – were not profitable, which encouraged the discussion with the Australian government about their future.
The company expects a loan warranty to take effect in the second half of 2025.
In 2024, the Bank of China signed a contract with Nauru for investigating financial opportunities, undergoing Beijing’s strategic pressure in the region.
ANZ shares are currently trading 0.1% lower than the sub-industry of wide financial resources.
($ 1 = 1,5911 Australian dollars)
(Reporting Rishava Chatterjeee in Bengalur; Mounting Rashmi Aich and Alan Baron)
