The Federal Court has ruled that the banks have not yet been paid $10.6 billion they owed for the bank bailouts.
The banks were bailed out by the Coalition in late 2008 to support them in the global financial crisis.
But they have been left struggling for years, with some banks still struggling to repay their debts.
The Federal Court said the banks were owed about $10 billion.
“The banks have made substantial commitments, but they are not yet paid,” Justice David Goulburn said in his decision.
Mr Goulbury said the bailouts were “significant, but not catastrophic”.
“I find that, for reasons of convenience, the banks do not currently face a material risk of financial collapse,” he said.
“However, the Commonwealth and the banks may need to consider a variety of alternative measures to meet their obligations.”
What is the bail-out?
The banks are due to receive the full amount of money in instalments of $100 a day.
The government was able to get the banks to repay more than $50 billion in 2008, but it took until April 2019 before the banks had paid back that amount.
Mr Gouthard said the amount owed was “significant” and the government should not be penalised for it.
“There is nothing about the amount of the bank bailout that is disproportionate,” he told the court.
“I have no reason to believe that it is the case that it will be so.”
Topics:financial-dissector,courts-and-trials,government-and/or-politics,business-economics-and.financial-trends,business,consumer-finance,bankers-and,government—state-issues,courthouse-case-law-journal,federal-parliament,law-crime-and_robbery,financial-services,business—consumer-protection,courtesy-business,courtyards-by-the-sea-2424,sarah-barratt-2438,bennett-brook-2450,bryant-brooks-2422,flinders-2300,kawartha-2428,tawonga-2500,flowers-2850,kahrawinka-2900,tonganoora-2870,north-west-2640,shelburne-2580,nambour-2410,marshfield-2680,ballygawley-2780,brook-2600,nsw-2610,florys-2830,brookwood-2740,barnaby-2660,barrin-2730,cadogan-2630,tuggeranong-2690,bidders-bay-2840,carrumbud-2860,dunedin-2650,lionel-shelton-2800,lawn-2415,kalgoorlie-2020,makanui-2620,bollington-2720,koorivale-2408,kingston-3000,lincoln-north-3040,ngarth-2710,grahame-2930,finn-3200,kirra-3000 source ABC News (AU) title Aussie bank to face more challenges in coming months as court rules the bail system isn’t ‘unfair’ article The banks were also required to pay back some of the money the Federal Government had loaned them, including $1.1 billion over three years.
The payments were due in April 2019, but the banks say they have not paid them yet.
The case is expected to be heard in November.
Topics:government-office,court-trips,financial,banks,government–and-politics.act,banker-bonds,australiaFirst posted November 12, 2018 07:19:39Contact Andrew RawnsleyMore stories from Northern Territory