The novel Coronavirus (COVID-19) epidemic has engulfed the whole world. Australia, like other countries, has been impacted significantly by the pandemic. The epidemic will change the course of economic development and international tread of country. The Australian government has introduced various stimulus packages to support businesses and consumers of the country.
The authority has taken steps to break the chain of COVID -19 expansion like banning of public gatherings of more than two people, shutting down non-essential businesses and overseas travels are also banned. The Government has declared the states of emergency into the country.
In response to global epidemic Australian Government has announced an $11 billion economic incentive to support individuals, businesses and households affected by novel coronavirus (COVID-19). The Australian Prudential Regulation Authority (APRA), due to economic slowdown has announced temporary relief from its capital requirement, allowing banks to utilize some of their current large buffers to facilitate ongoing lending to the economy as long as minimum capital requirements are met.
COVID-19 has created economic uncertainty, due to this Reserve Bank of Australia (RBA) ready to purchase Australian government bonds in the secondary market to support its smooth functioning. RBA allow banks to lend more money to SMEs to balance the local economy. RBA has also established a term funding facility of at least $57 billion for SMEs lending.
Despite these challenging situations, Australia remains open for business and continues to welcome international investors and business partners. The country is likely to recover well and providing a safe & stable environment for foreign investments.