Korea guarantees banks' foreign debt

The Korean government has announced bolds initiative to help its financial institutions overcome difficulties in securing overseas funding.

The authorities announced over the weekend that they will guarantee $100 billion of lenders' foreign-currency debts and make a further $30 billion in US-dollars loans available to banks.

The government will guarantee as much as $100 billion of new foreign debt taken out by Korean banks between 20 October and 30 June next year. The protection is valid for