Gross foreign debt on 5-month downward trend

Foreign debts have been consecutively on the downtrend during the past five months.

¡°As of the end of 2000, total foreign debts stood at US$136.3 billion, which was reduced by US$300 million and US$800 million compared with the previous month and previous year respectively,¡± the Ministry of Finance and Economy revealed Feb. 6.

The peak of gross foreign debts ran to US$142.1 billion in July 2000, and then it declined to US$141.9 billion in Autumn, US$140.5 billion in September, US$138.4 billion in October, and US$136.6 billion in November. Of particular note, the short-term foreign debt ratio, which denotes short-term payment ability, registered at 45.9 percent down 2.1 percentage points compared with the previous month.

¡°Owing to increasing trade credit, short-term foreign debt increased by US$5 billion year on year,¡± Lee Myung-Gyu, director of the Foreign Exchange System of the MOFE, said. ¡°However, it stands at quite a low level compared with before the exchange crisis.¡±

Meanwhile, net foreign credit, which means gross foreign credit minus gross foreign debt, ran to US$30.6 billion, up US$4.5 billion above the previous level. It marked an all-time high, and has been continuously on an upward trend since September 1999.

Choi Young-Hae moneychoi@donga.com