Bank of Queensland chief executive George Frazis is optimistic the Australian economy will recover well from the impact of the coronavirus pandemic. With $189 billion in stimulus packages being announced by the federal government, Frazis is confident Australia can weather the economic storm. Frazis’s optimism centres on the position of the Australian economy, government finances and bank balance sheets ahead of the crisis emerging.
The RBA has introduced a $90 billion funding facility for banks and the Federal Government will guarantee 50% of unsecured bank loans of up to $250,000 under a new scheme for small and medium businesses. Both the Government and the Reserve Bank have shown they will do everything that’s required to get us through, says Frazis. When we do get through the worst of the health crisis, the turnaround will be quite strong, he says. As some industry sectors such as hospitality and airlines close down, other industries such as banks, government agencies, mining companies, Telstra and supermarkets are looking to take on extra staff on a temporary basis.