ID :
38888
Mon, 01/05/2009 - 13:48
Auther :
Shortlink :
http://m.oananews.org//node/38888
The shortlink copeid
Financial sector required to inject 'enough' liquidity: finance minister
SEOUL, Jan. 5 (Yonhap) -- Finance Minister Kang Man-soo on Monday called for
local banks and financial institutes to inject "enough" liquidity into the
markets in a bid to help cash-strapped small and medium-sized companies amid
frozen credit conditions.
In his New Year message to leading officials of the local financial sector, he
also urged them to trim interest rates and pursue a debt-rescheduling program to
ease borrowing costs for low-income households.
"The financial sector is required to step up crisis management efforts for
survival. To that end, what it has to do first is to provide enough liquidity to
the real part of the economy," Kang told participants.
"Efforts should also be made to ease burdens on households by cutting interest
rates and pushing for a debt-rescheduling program. This will help itself to
secure a stable profit source as well," he added.
The global recession, sparked by financial turbulence in mid-September, is taking
its toll on South Korea's export-driven economy by making credit conditions
tighter for debt-ridden households and companies.
The central bank has been aggressive in thawing the markets by sharply trimming
its key interest rates but commercial banks remain reluctant to provide loans for
fear of worsening economic conditions.
Against this backdrop, the government has injected liquidity to the financial
system and announced large-scale stimulus packages over the past months to
kick-start the fast-slumping local economy.
Kang said the government's efforts to get over what he calls an "unprecedented"
crisis has been "preemptive," "decisive" and "sufficient," citing around 140
trillion won (US$10.6 billion) worth of liquidity injections, tax reductions and
fiscal spending.
"Based on such policy efforts, we need to turn the crisis into an opportunity,"
he said, calling for the financial sector to join the nationwide efforts to tide
out the current challenges.
Kang demanded the financial sector strengthen their fundamentals, bracing for a
deepening economic downturn, while accelerating industry-wide restructuring
efforts by providing necessary help to companies deemed to be viable and engineer
a swift closure for non-viable ones.
kokobj@yna.co.kr
(END)
local banks and financial institutes to inject "enough" liquidity into the
markets in a bid to help cash-strapped small and medium-sized companies amid
frozen credit conditions.
In his New Year message to leading officials of the local financial sector, he
also urged them to trim interest rates and pursue a debt-rescheduling program to
ease borrowing costs for low-income households.
"The financial sector is required to step up crisis management efforts for
survival. To that end, what it has to do first is to provide enough liquidity to
the real part of the economy," Kang told participants.
"Efforts should also be made to ease burdens on households by cutting interest
rates and pushing for a debt-rescheduling program. This will help itself to
secure a stable profit source as well," he added.
The global recession, sparked by financial turbulence in mid-September, is taking
its toll on South Korea's export-driven economy by making credit conditions
tighter for debt-ridden households and companies.
The central bank has been aggressive in thawing the markets by sharply trimming
its key interest rates but commercial banks remain reluctant to provide loans for
fear of worsening economic conditions.
Against this backdrop, the government has injected liquidity to the financial
system and announced large-scale stimulus packages over the past months to
kick-start the fast-slumping local economy.
Kang said the government's efforts to get over what he calls an "unprecedented"
crisis has been "preemptive," "decisive" and "sufficient," citing around 140
trillion won (US$10.6 billion) worth of liquidity injections, tax reductions and
fiscal spending.
"Based on such policy efforts, we need to turn the crisis into an opportunity,"
he said, calling for the financial sector to join the nationwide efforts to tide
out the current challenges.
Kang demanded the financial sector strengthen their fundamentals, bracing for a
deepening economic downturn, while accelerating industry-wide restructuring
efforts by providing necessary help to companies deemed to be viable and engineer
a swift closure for non-viable ones.
kokobj@yna.co.kr
(END)
