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Company shutdown list coming soon

Posted October. 11, 2000 13:13,   


Starting later this week, the list of companies that will be driven from the market will be announced. However, the government plans to help corporations not suffer from financial troubles. In this connection, banks will be encouraged to roll over maturing commercial papers and corporate bonds.

A high-ranking official of the Financial Supervisory Service said Tuesday that banks that have confirmed criteria for expulsion will be able to announce them within the next two to three days. He noted that it would have a great impact on the market, adding that the banks would announce the list as soon as they are ready.

The FSS has approved the request of each bank for creation of a credit evaluation committee to work out criteria for expulsion of insolvent companies as well as target companies.

Officials of the Financial Supervisory Commission said that the FSC was studying ways to encourage financial institutions, including banks, merchant banks and insurance companies, to roll over corporate bonds at least by the end of October, when banks will announce their decision on corporate expulsion.

Hong Chan-Sun hcs@donga.com