Foreign Loan Situation Improving

Home > Business > Economy

print dictionary print

Foreign Loan Situation Improving

Domestic business groups' ability to secure foreign based loans are rapidly getting better since the International Monetary Fund(IMF) bailout program beset Korea last year.
Korea Electric Power(KEP) on November 8 decided to issue 100 million dollars of non-guaranteed 1 year foreign bonds with a 4.25-4.5% interest rate plus LIBO interest rates. This is the best conditioned foreign bond issued by a Korean company since the economic crisis began.
According to Credit Swiss First Bank(CSFB), the main contributor of the loans, said, 'We raised those external volunteers last week and the application money was far more than we initially imagined, so the interest rate did not have to be high.'
Although credit evaluation institutes such as Standard and Poors determined KEP's credit rating at BB+, which means not proper for investment, foreign investors seem to have more faith in Korea's future.
Park Sung Jin, a Shinyoung Securities' bond dealer commented, 'Recently there are lots of cases of issuing foreign bonds with no assurance.'

More in Economy

2020 Korea Economic Forum

Dignitaries welcome frank evaluation of Covid-19 and the economy

Green New Deal, coronavirus discussed at 14th KEF

FSC Chairman stresses importance of global cooperation

Not set yet

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now