Canberra, March 18:: Australia cannot be immune from the impact of further global financial market turbulence, but the country's circumstances were more favourable than other nations, Australian Treasurer Wayne Swan said on Tuesday.

In a ministerial statement to Australia's Parliament, Swan said the credit squeeze had raised borrowing costs for Australian institutions and forced increased issuance by major local banks in the domestic and international bond markets.

"Problem loans are still very low by historical standards, however, and Australia's corporate debt to equity ratio remains at historically low levels," he said.

"The turmoil in global financial markets has not unduly restricted the total supply of finance to our economy, with strong growth in bank lending more than offsetting the reductions in corporate bond issuance, and in lending to households by mortgage originators."

While the US Federal Reserve is cutting interest rates to head off a possible recession, Australia's central bank has raised official rates by 100 basis points since August to fight inflation, which is running at 16-year highs.

Swan said the 12 consecutive rate rises since 2002 had taken a toll on household budgets, but Australia was not experiencing the same levels of mortgage defaults as the United States.

"While it is important that we recognise the severity, duration and possible consequences of the global financial turbulence, we should also recognise that Australia's circumstances are more favourable than those elsewhere," he said.

Swan said Australia's economy has been supported by strong price rises for commodities, with demand for Australian metals, minerals and energy exports lifting Australia's terms of trade to 50-year highs.

He said while there was considerable uncertainty around the medium-term outlook for non-rural commodity prices, recent contracts for iron ore and coal prices suggest further support for the terms of trade in the period ahead.

Swan recommitted to delivering a surplus of at least 1.5 percent of gross domestic product for 2008-09, to help fight inflationary pressures, when he delivers his first national budget on May 13.