(Bloomberg) -- Australia’s TreasurerJosh Frydenberg said the government is working on a second stimulus package that will be “significantly bigger” than last week’s A$17.6 billion ($10.1 billion) fiscal injection.
Frydenberg said the plan was being designed to cushion the blow on jobs and to support small and medium-sized enterprises. In an interview with Sky News Friday, Frydenberg said the government is keeping a “watching brief” on the airline industry, though when asked if it was considering nationalizing struggling companies, Frydenberg said that “wasn’t the focus right now.”
The government and central bank have unleashed a massive shot of fiscal and monetary stimulus as the economy threatens to fall into its first recession in almost 30 years. The Reserve Bank of Australia cut interest rates to a record low 0.25% on Thursday and will aim to keep three-year government bond yields at the same level.
The RBA also announced a term funding facility of at least A$90 billion for the banking system, with particular support for credit to small and medium-sized businesses. In a complementary program, the government will invest up to A$15 billion to allow smaller lenders to support consumers and smaller businesses.
Australian Banks Get $50 Billion Facility, Capital Rules Waiver
Frydenberg said the nation’s biggest lenders would announce measures Friday to relieve pressure on customers.
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