NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2004

NOTE 16: FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

(d) Liquidity Risk

The Corporation has a liquidity policy in place requiring the holding of liquid assets to safeguard against a short term inability to issue debt.  In addition to the holding of liquid assets the Corporation maintains an intra-day standby line of  A$80 million and during the financial year had a US$20 million committed funding line in place.

The US$ funding was provided by way of a purchased Put Option that enabled the Corporation to issue short term USD debt to a major international bank counterparty.