Foreign Banks Queuing to Lend Money to Korean BanksForeign banks are now lining up to lend money to Korean banks.
The main reason for this favorable situation is that foreign banks judge that Korea has completely escaped from the grip of a possible foreign exchange crisis.
Accordingly, foreign banks, which are now having trouble finding good borrowers in overseas markets owing to foreign exchange market concerns in China, Eastern Europe, Brazil and other South American countries, are considering expanding loans to Korea.
Associates in financial markets are saying that the Korea's preferred standing is universal among foreign banks, and 100 percent want to extend their loans to Korean banks.
Accordingly, Korean banks are demanding that foreign banks lower interest rate levels, but foreign banks are insisting that suitable spread rates are still needed, because the credit rating for some Korean banks has not recovered, yet, despite the recovery of Korea's sovereign credit rating.
As of the end of 1998, foreign debt held by Korean financial institutions totaled 57.9 billion dollars, as Korean banks payed back 12.1 billion dollars of debt last year.
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