The Australian government
has agreed to help compensate people in Canberra whose asbestos-ridden
houses will be demolished with a A$1bn (£546m) loan.
The loan to the Australian Capital Territory comes after talks between ACT Chief Minister Katy Gallagher and Federal Employment Minister Eric Abetz.
More than 1,000 Canberra homes affected by loose-fill asbestos insulation will be bought and demolished.
Ms Gallagher said her government had reached "an in-principle agreement".
"The Commonwealth will offer to provide the ACT with a A$1bn concessional loan towards the cost of the programme," she said.
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