Fed: Rudd rolls out Struggle Street financial assistance package
05 Apr 2009 3:43 PM
MELBOURNE, April 5 AAP - Prime Minister Kevin Rudd has outlined a deal giving people who find themselves out of work some reprieve from the financial burdens of housing and car loans.
Mr Rudd detailed a raft of new measures to help Australians feeling the effects of the economic downturn at a Community Jobs Forum at the Casey Civic Centre, on Melbourne's eastern fringe, on Sunday.
An agreement with Australia's four big banks would support borrowers in temporary hardship through loss of employment by postponing mortgage repayments for up to 12 months, Mr Rudd said.
"The banks are also prepared to consider extending the period of the mortgage contract and reducing the amount of each payment due under the contract," Mr Rudd said.
Banks would also be prepared to consider interest-only repayment options, including car loans where appropriate, he said.
"Of course, these options won't be appropriate in every case, and banks will make assessments based on the borrower's ability to meet new contractual obligations in the long term," he said.
Mr Rudd acknowledged the Commonwealth Bank's "good will" for already introducing this policy in recent weeks.
The government's new Jobs and Training Compact also encompasses measures for youth employment and training opportunities.
