[Courtesy of the Bank of Korea]
South Korea's central bank approved a special loan of 8.68 billion dollars Friday to help state-run lenders lead the restructuring of ailing shipping and shipbuilding industries.
The 10-trillion-won (8.68-billion-dollar) loan will not be used to support private companies but to expand capital of the state-run Industrial Bank of Korea. The loan carries the maximum maturity of one year because a state restructuring fund will expire at the end of next year.
The total amount of money for corporate restructuring has been set at 11 trillion won. The restructuring fund is aimed at bolstering capital at state-run policy banks so that they can facilitate corporate restructuring without any significant fall in their capital ratio.
South Korea's big three shipyards and two main container carriers are under massive restructuring led by creditors.
Aju News Lim Chang-won = cwlim34@ajunews.com
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