Short-Term Debt to Be Cleared Earlier

Eighteen billion dollars of domestic financial institutes' short-term debt due by the year 2001 will be paid back earlier, beginning in the second half of this year.
Moreover, national business groups and banks will have to purchase foreign currency in the domestic market and so restrain from borrowing foreign capital abroad.
The Asia Development Bank(ADB) will also be able to issue won-denominated securities that will be convertible to dollars.
Lee Kyu Sung, minister of finance and economy, announced the new policy at the 32nd ADB annual meeting in Manila, on April 30.
He mentioned, 'Recently foreign capital is rushing to the Korean Stock Market, en masse, which is causing an overflow of foreign currency, which in return is creating a strong won.'
To rectify this unbalanced situation, the government will encourage early payments on foreign loans.
A source from the ministry predicted, 'The government will be maintaining a quarterly-based plan to administer stable currency measures, and it will urge to pay off short-term debt from July.'
Hwashik Bong : trojans@joongang.co.kr