Big Four Banks and supermarkets have agreed to a deal to inject $50 million into the struggling cash-transportation firm Linfox Armaguard, a move that keeps bank notes and coins flowing around the economy.
The new agreement will give Armaguard funding for a year from July 1, the Australian Financial Review reported. The proposal will be submitted to the consumer competition regulator on Monday, the newspaper reported, without saying where it got the information.
The uncertain fate of Armaguard, owned by trucking billionaire Lindsay Fox, has raised concerns in recent months that people and businesses in Australia might have to make do without access to notes and coins, which currently account for about 7 per cent of payments.
Negotiations were being conducted on behalf of lenders by a group representing the country’s biggest firms, the Australian Banking Association.
On that governing council sit all the chief executive officers of Commonwealth Bank of Australia, ANZ, Westpac and National Australia Bank. The ABA didn’t respond immediately to an emailed request for comment.
Wesfarmers, Coles and Woolworths will also help prop up the cash transport distributor.
The Australian Banking Association and Armaguard are expected to continue discussions about the future model for the cash-in-transit industry beyond 2024-25, the AFR said.
Bloomberg.