South Korea to guarantee banks’ foreign currency debts

October 19, 2008 by · Leave a Comment
Filed under: Global News 

More evidence of this global problem.  I am surprised to see this article, I thought the Fed offered unlimited currency swaps for countries needing dollars.  With S. Korea having the 6th largest foreign currency reserves, it looks like they are working on getting through this crisis under there own power.  If so, that would be the prudent approach to keep its credit rating in tact.

Release:

 

South Korea announced measures Sunday to shore up its banks by guaranteeing their external debt and pumping more money into the financial system amid the global credit crisis.

The government said it will provide up to $100 billion to secure banks’ maturing foreign currency debt for three years on loans taken out from Oct. 20 this year until June 30, 2009.

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