AUSTRALIA’S biggest banks are set to be sold off.
The Australian Securities Exchange (ASX) has announced a deal to sell all of the banks’ listed shares, with an option to buy the shares if it gets more than the $7.3 billion in debt.
Key points:Australian banking group ANZ and Aussie banks ANZ, BHP and Westpac will be sold for $7bnThe deal would result in a loss of up to $6.4 billion for the banksThe ASX is a market that has become increasingly attractive as it has become more competitive in terms of pricing, so the move has the potential to make a big difference for the Australian banking industry.
The move comes as the Australian Government has announced that it will reduce the capital it will borrow to $2.5 trillion.
The announcement is the result of the government’s “coup d’etat” to balance the budget by the end of March.
The decision to cut the deficit was based on a series of policies including a tax increase, the reintroduction of GST and the creation of a tax on financial transactions.
The ASP has said the changes will save the Government $2 billion.
The changes to the debt will include a $5 billion increase to the capital requirement, while the debt reduction will result in the loss of more than $6 billion.
However, the deal has not been officially announced.
The Government announced the measures in the Budget.
It is expected to see the debt reduced by $3 billion, with the capital requirements cut by $1 billion and the tax on foreign investment, including in real estate, cut by an extra $200 million.
The banks are not the only Australian banks that are being sold.
The Financial Services Commission (FSC) has also announced that the Australian Competition and Consumer Commission (ACCC) will sell its shares for $5.8 billion.
It’s believed the Australian Banking Group (ABA) and Australian Building and Construction Commission (ABCC) could also be sold.
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