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The Australian Business Securitisation Fund Supports SME’s

Media Releases

Date : 02 April 2020

Author: The Hon Josh Frydenberg MP

THE HON JOSH FRYDENBERG MP
Treasurer

MEDIA RELEASE

3 April 2020

THE AUSTRALIAN BUSINESS SECURITISATION FUND SUPPORTS SME’S

The Australian Office of Financial Management (AOFM) announced a round of funding from the Australian Business Securitisation Fund (ABSF) to enable smaller lenders to continue supporting Australian small and medium sized businesses (SME’s).

The AOFM will invest $250 million of ABSF funding in securities issued by a warehouse facility to support lending to SME’s.

The investment will fund a portfolio of loans for a period of up to four years and will assist with deepening the market for SME asset backed securities.

Small lenders are critical to Australia’s lending markets in creating more competition, especially for SME’s, during the current coronavirus crisis.

This funding complements other initiatives undertaken by the Government and the Reserve Bank of Australia (RBA) to support lending to SME’s, including:

The Government will continue to do what it takes to ensure that Australia bounces back stronger.

Ends.

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