NSW: Government considering $300 billion debt blowout

AAP General News (Australia)
04-24-2009
NSW: Government considering $300 billion debt blowout

The Rudd government is considering exceeding its 200 billion dollar limit on borrowings
.. as it blows out the deficit to fight off the expected recession.

News Limited reports analysts are forecasting debt levels of 300 billion dollars ..

and warn unchecked borrowings will jeopardise Australia's triple-A credit rating .. leading
to higher interest rates.

The government raised the legal ceiling for its debt from 75 billion to 200 billion in February.

UBS interest rate strategist MATTHEW JOHNSON has told The Australian newspaper the
borrowing requirement is now set to hit 300 billion dollars.

AAP RTV bc/psm/

KEYWORD: ECONOMY (SYDNEY)

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