One model for debt guarantee fee
There's no news yet on the fee that Australia's Treasury has in mind that banks must pay for the benefit of the government guarantee on term offshore funding.One precedent might be the fee that Britain's Treasury will apply for the similar scheme in that country. Britain's Debt Management Office yesterday evening published the rules that will apply to the credit guarantee scheme.In Britain the fee will be 50 basis points plus 100 per cent of the median five-year credit default swap spread during the 12 months to 7 October 2008.