75 Trillion Won for Banks" Restructuring.
The IMF revealed on January 24 that the restructuring of Korean banks will cost 75 trillion won, which is 18 percent of the country's Gross Domestic Product (GDP).The IMF explained that it initially estimated the interest costs on bonds, which the Korean government is responsible for, would be 0.8 percent of the GDP(3.3 trillion won) but it will rise by 1.5 to 2.0 percent.
If the interest costs are 2.3 to 2.8 percent of the GDP, the total sum of interest paid will grow to 9.6 to 11.7 trillion won.
The IMF forecasts that restructuring costs will increase more and more due to tighter supervision on banks. This figure surpasses the expectation of the Korean government
with the Korea JoongAng Daily
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