A very big bank of Australia has announced that they are thinking seriously of waiving off the home loans of the persons who have lost everything in the flood in Queensland and Victoria. The senior executives from Westpac said that they are also thinking whether flood insurance must be made compulsory for persons who are taking a mortgage loan.
As the country is passing through one of the worst natural disasters, the government has estimated that the economic impact of the flood is going to be huge. A rough estimate puts that miners and farmers have lost around $3 billion from this devastating flood.
Reports say that most of the mines in Queensland are under water and coal exports are going to be hit by $2.5 billion in this one quarter alone. The farmers who grow cotton, vegetables and grain have lost around $500 million in the flood.
Peter Hanlon, chief executive of Hanlon said that they have already waived off mortgages for three consecutive months, but they are thinking of waiving of the entire mortgage if the situation is really that serious. They are also thinking of the matter that whether an extra layer of insurance can be given out to those taking home loans.
In the meantime, Prime Minister Julia Gillard has already said that the nation may go for tough cuts on government spending and create a levy to create a fund of around $30 billion to make the rebuilding. But there is an opposition from the Green bench as they are saying that what is the point in taxing the common man when the exact bill for the damage has not yet been tailored?