Australia seeks banker advice on flood losses

Australian government officials have begun tapping bankers for advice on how to meet flood costs that could total 15 billion Australian dollars (US$14.8 billion) in Queensland, a region that accounts for a fifth of the nation's economy.

As floods surged in downtown Brisbane last week, Australian Assistant Treasurer Bill Shorten began preliminary conversations with the Australian Bankers Association and executives at several banks, including Commonwealth Bank of Australia and National Australia Bank Ltd., to discuss how best to help the region, according to representatives from both lenders.

This week, Mr. Shorten and Treasurer Wayne Swan will continue those meetings in an effort to begin tackling the rising individual, corporate and government costs, the bankers said. A spokesman for the treasurer declined to comment.

The government said it will need more than A$5 billion for rebuilding public damage alone, without counting costs to private businesses as well as lost coal, tourism and agricultural revenue that all significantly add to the total price tag. The country's big banks are ready to help a government likely to issue more debt by supporting the issuance, but won't be simply writing devastated individuals or businesses a blank check, the bankers said.