S. Korea not mulling inter-bank loan guarantees

WASHINGTON, Oct. 13 (Yonhap) -- South Korea is not considering guaranteeing inter-bank loans at the moment, but will closely monitor other Asian countries' moves before making a decision, Seoul's top financial policymaker said Monday.

"Some countries have decided to guarantee inter-bank transactions but I don't
think Asian nations face similar conditions to follow suit," Fiance Minister Kang
Man-soo told reporters after attending the annual meetings of the International
Monetary Fund and the World Bank here.
"Still, South Korea will consider whether to take such an action or not after
reviewing measures taken by Hong Kong, Japan and other Asian countries," he
added.
The comments come as global leaders are mounting international efforts to avoid a
crisis with such measures as liquidity provision, interest cuts and state
guarantee for inter-bank transactions and deposits.
South Korea is also struggling to unfreeze the tightening credit conditions
sparked by the collapse of U.S. investment giant Lehman Brothers Holdings Inc.
last month and the resulting financial fiasco that followed. Dollar shortage has
pushed down the won and local stocks over the past few weeks.
The Finance Ministry recently announced that it will inject a total of $10
billion into the nation's won-dollar swap market to provide liquidity amid
tightening credit conditions.
On Saturday, Kang called on advanced nations to include emerging economies
including South Korea in their currency swap programs to better cope with the
current global financial turmoil.
kokobj@yna.co.kr
(END)