The Australian government will be giving ANZ Group a loan guarantee worth A$2 billion ($1.26 billion) to keep selling its services in the Pacific region, the lender said on Friday.

The federal government will provide a $2 billion guarantee to ANZ bank in the Pacific for it to continue services as Australia works to lock out China.

ANZ has secured a 10-year, AUD$2 billion guarantee from the Australian Government to support its banking operations in the Pacific. The guarantee, expected to start soon aims to bolster ANZ’s long-term presence in the region.

Australia will provide ANZ with a decade-long loan guarantee of A$2 billion ($1.26 billion), to ensure the bank maintains the branch network across the Pacific, a move seen as a diplomatic win amid growing regional competition with China.

(Reuters) - The Australian government will be giving ANZ Group a loan guarantee worth A$2 billion ($1.26 billion) to keep selling its services in the Pacific region, the lender said on Friday. The government also assesses the probability of the guarantee being called as very low. It includes an annual fee payable by the bank to the government.