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Banking bailout rises to 160 trillion won

Posted September. 22, 2000 14:10,   


The government has decided to budget an additional 50 trillion won for injection into the financial restructuring effort. The fund will be comprised of 40 trillion won from the public treasury and 10 trillion won from repayment from other sectors which received earlier injections.

Accordingly, the total public fund injected into the financial sector restructuring effort has reached 160 trillion won from 109.6 trillion won as of August.

The Ministry of Finance and Economy revealed that the necessary public fund stood at 50 trillion won and that 10 trillion won of the 50 trillion would be derived through the collection of earlier public fund injections. The rest will have to wait until the proposal is reviewed by the National Assembly.

The Ministry of Finance and Economy also proposed to issue guaranteed savings bonds with 3-, 5-, and 7-year maturity terms as soon as possible to secure the public funds necessary for the plan by next year.

The ministry explained that the current proposal of 50 trillion won was an increase of 20 trillion won from the original amount of 30 trillion won announced in May. The additional money was necessitated by new estimates that included helping the banks run more "cleanly" and for the companies facing walkouts.