Opinion
Why bankers hope they'll avoid a bad debt tsunami
Economic activity has fallen off a cliff and the jobless rate has spiked. So why are bankers quietly confident they'll avoid the bad debt blowout they suffered in the early 1990s recession?
Karen MaleyColumnistOn the face of it, the stats look abysmal.
There are 7.7 million Australian workers on some form of government welfare. Repayments have been frozen on 10 per cent of mortgages and 15 per cent of SME loans. Bankers have been left with about $220 billion in loans that aren't being serviced.
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