PRESS DIGEST-Australian General News - May 26

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

The Australian Securities and Investments Commission yesterday lifted its ban on the short selling of financial stocks but said it would continue to monitor the situation.

The ban was introduced in September and allowed finance companies to raise a combined A$45 billion in capital. Banking stocks suffered modest falls in yesterday's trading, with Macquarie Group posting the largest drop of 6.5 percent.

However, Credit Suisse analyst James Ellis said the full impact of the ban's lifting will play out "over the next few days.' Page 1.

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Australia's net debt is forecast to be A$75 billion in 2020, the lowest out of "all the major advanced economies,' according to Prime Minister Kevin Rudd.

Mr Rudd was yesterday forced into revealing the Treasury forecast after Opposition Leader Malcolm Turnbull questioned the Government's economic growth calculations. However, Stephen Halmarick, of Colonial First State, said he "was not sure anybody really has a strong idea what the surpluses will look like that far out.' Page 1.

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