Nearly 5 trillion won ready for holiday

The government has decided to study ways of reflecting financial institutions` lending to small and medium-sized enterprises based on their management evaluation.

Also, the government plans to supply 4.5 trillion to 5 trillion won in additional fund to facilitate seasonal demand before Chuseok.

It will expand Korea Credit Guarantee Fund`s funding source for primary CBO guarantee to more than 250 billion won, while raising 10 trillion won in bond-based fund.

And it plans to offer up to 2 billion won of special guarantee to those companies that delay payment of salary.

The Ministry of Finance and Economy has disclosed such plans designed to tackle financial troubles at August 23`s joint meeting between the government and ruling party.

An official of the Ministry of Finance and Economy said that banks are required to create a system to actively offer financing to blue-chip small and medium-sized enterprises through a screening process. He noted that the government would direct to keep the exemption from responsibility and check the appropriateness of criteria for credit loans so that the system of credit loans can be activated.

Saying that the government will study ways of reflecting financial institutions` lending to small and medium-sized enterprises on their management evaluation, he noted that the relevant system would be mended so that banks that offered more corporate financing could get more funding from the Bank of Korea.

At the same time, the government will try to adjust the ratio of guarantee for primary CBO and the portfolio ratio of speculation-grade bonds in a flexible manner in harmony with the market situation.

Besides, the government intends to take an active measure if it is necessary in order to better cope with the financial situation of small and medium-sized enterprises through close monitoring.