Westpac funding on track 02 May 2008 3:44PM John Kavanagh Westpac chief executive Gail Kelly assured the market yesterday that the bank's funding arrangements were well in hand. She said 80 per cent of the 2008 term funding plan, $25 billion of funding, had been completed to date. The duration of the term funding is 2.8 years. Ratings agencies have warned that any significant shortening in the duration of banks' term funding could trigger a rating event. The ratings agencies are concerned that the banks could end up with very big funding requirements in 2009 and find that liquidity is still very tight. Westpac chief financial officer Phil Coffey said the term funding requirement for 2009 would be between $20 and $25 billion - less than the current year requirement. The bank built up $34 billion in liquidity - more than double its normal level. Coffey predicted that funding costs in the second half would continue at higher rates. The make-up of funding in the March half was two-thirds private and one-third public. Westpac treasurer Curt Zuber said the mix would include more public funding in the second half. He said the bank had achieved good diversification in its funding program, with Asian, European and North American investors taking fixed and floating securities.