Gov"t Will Repay $2.8 Bil. to IMF

The Korean government decided to repay $2.8 billion to the International Monetary Fund (IMF) that is due this month.
However the government failed in its attempt to get a written promise from the IMF that would allow the Korean government to receive an equivalent loan in the event that the Korean economic situation worsens.
The Ministry of Finance and Economy(MOFE) announced on December 9 that after negotiations with the IMF, the government will repay the $2.8 billion due in December.
The loan payments that come due after January next year can be discussed with the IMF, which will give due consideration to the economic situation both internally and outside the country at that time, but ultimately the government should repay the loans as scheduled, MOFE said.
The loan repayments scheduled for next year are as follows: $1.0 billion in January; $1.0 billion in February; $600 million in May; and $7.1 billion from July through December.
MOFE explained, 'Even though we have no written promise from the IMF, they verbally promised their help if the Korean economic situation worsens.'
MOFE forcasted that after repaying this money the usuable foreign reserve will be $47 billion by the end of this year mainly due to the trade surplus.
The IMF loan repayment is expected to increase Korea's credibility in international markets.