March 2 (Bloomberg) -- Australia’s Treasurer Wayne Swan is under pressure to help state governments raise A$100 billion ($64 billion) for infrastructure plans by buying bonds, the Australian Financial Review said.

Queensland Treasurer Andrew Fraser, who has written to Swan on the issue, said the states had been told by the government that it was working to rectify the problem, the newspaper said.

The recent downgrading of Queensland’s credit rating has exacerbated a funding shortage as investors fear deteriorating budget conditions in other states, the report added.

To contact the reporter for this story: Jacob Greber in Sydney at jgreber@bloomberg.net

Last Updated: March 1, 2009 15:31 EST