ID :
24420
Tue, 10/14/2008 - 16:28
Auther :
Shortlink :
http://m.oananews.org//node/24420
The shortlink copeid
S. Korea to hold off on inter-bank loan guarantees
(ATTN: RECASTS headline, lead; ADDS remarks of Kookmin head from 8th para)
WASHINGTON, Oct. 13 (Yonhap) -- South Korea will hold off on inter-bank loan guarantees for the time being and 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," Finance Minister
Kang Man-soo told reporters after attending an annual meeting 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.
Kang's comments came as global leaders are mounting international efforts to
avoid a crisis using measures such as liquidity provision, interest cuts and
state guarantees for inter-bank transactions and deposits.
South Korea is also struggling to loosen 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. A 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
pinched 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.
Meanwhile, the head of South Korea's top lender called on the government to
guarantee inter-bank loans following similar moves by Western nations to restore
confidence in the teetering global financial system.
"Unless South Korea follows suit by guaranteeing inter-bank lending, local
lenders may face difficulties securing short-term loans with no money flowing
into the market," Kookmin Bank head Kang Chung-won told reporters during a trip
to Washington for the annual talks.
"Transactions with overseas banks should also be guaranteed since the dollar in
South Korea comes only from offshore sources," Kang said. "An increased dollar
supply would support small local exporters and ease the won's descent against the
greenback."
WASHINGTON, Oct. 13 (Yonhap) -- South Korea will hold off on inter-bank loan guarantees for the time being and 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," Finance Minister
Kang Man-soo told reporters after attending an annual meeting 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.
Kang's comments came as global leaders are mounting international efforts to
avoid a crisis using measures such as liquidity provision, interest cuts and
state guarantees for inter-bank transactions and deposits.
South Korea is also struggling to loosen 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. A 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
pinched 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.
Meanwhile, the head of South Korea's top lender called on the government to
guarantee inter-bank loans following similar moves by Western nations to restore
confidence in the teetering global financial system.
"Unless South Korea follows suit by guaranteeing inter-bank lending, local
lenders may face difficulties securing short-term loans with no money flowing
into the market," Kookmin Bank head Kang Chung-won told reporters during a trip
to Washington for the annual talks.
"Transactions with overseas banks should also be guaranteed since the dollar in
South Korea comes only from offshore sources," Kang said. "An increased dollar
supply would support small local exporters and ease the won's descent against the
greenback."
