(Corrects first paragraph to make clear it is companies, not banks, that face the funding shortfall. Adds "to companies" in paragraph 3)
CANBERRA, Jan 21 (Reuters) - Australia's government is ready to help the country's banks plug a A$75 billion ($49 billion) shortfall in corporate funding, Prime Minister Kevin Rudd said.
Rudd said he was ready to take "whatever action is required" to fill the business funding gap caused by foreign banks' unwillingness to lend in smaller markets like Australia.
Australia's big banks are highly profitable, but heavily reliant on foreign borrowing to meet demand. Rudd said A$75 billion in loans to companies would fall due in the next two years.
"If foreign banks do not roll over their share of these loans, it will be difficult for Australia's four major banks to fill the gap on their own," he said in Adelaide on Wednesday, according to Australian Associated Press.
"The government stands ready to take whatever action is required to see Australia through the difficult times ahead." (Reporting by Rob Taylor, editing by Dayan Candappa)