Banks agree to roll over Hyundai

The financial sector has started to provide active support to ailing Hyundai Construction by rolling over its maturing debts. Hyundai Group has also decided to actively pursue management improvement by increasing Hyundai Construction`s self-rescue budget for this year by 900 billion won.

On July 26, presidents of 12 banks, including Hyundai Construction`s main creditors, Korea Exchange Bank, Korea Development Bank and Cho Hung Bank, held a financial market stabilization measures meeting, chaired by Yu Si-Yeol, chairman of the Korea Federation of Banks, at the Banks` Hall in Myong-dong, Seoul. They agreed to postpone the deadlines for the recovery of all Hyundai Construction`s debts, including ordinary loans, debentures and corporate promissory notes, which needed to be paid back by the end of this year.

It was also agreed that Korea Exchange Bank and Hyundai Construction will request the secondary finance sector, including general merchant banks and insurance companies, to postpone the due dates for the recovery of corporate promissory notes worth 100 billion won and debentures worth 500 billion won (including the portion possessed by banks) payable by the end of this year.