Australia makes banking guarantees

SYDNEY, Oct. 12 (UPI) -- Australian Prime Minister Kevin Rudd announced Sunday the government will guarantee bank deposits for the next three years.

Rudd said the government would also spend $4 billion (U.S. $2.6 billion) to bolster the Australian mortgage market and guarantee wholesale funding for Aussie banks operating in foreign markets, according to CNN.

The U.S. network said Australia's economy has benefited from increased trade with China and a relatively small exposure to sub-prime mortgages.