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Government to Lend South-North Cooperation Fund of 90 Billion Won to KNTO

Government to Lend South-North Cooperation Fund of 90 Billion Won to KNTO

Posted June. 26, 2001 19:54,   


The government decided to hold the National Assembly`s Unification and Foreign Affairs-Trade Committee (UFATC) to deal with the South-North Cooperation Fund (SNCF) matter requested by the Korea National Tourism Organization (KNTO).

A government official said on 26th, ``The KNTO officially requested the lending of the SNCF of 90 billion won to the Ministry of Unification. After related government departments have discussion on the matter and report to the parliament, they plan to decide their policy on lending of the fund at the UFATC.``

The KNTO requested government to subsidize 30 billion won to help to pay off the overdue travel payment of 22 million dollars to North Korea. It has been known that the KNTO wanted the loan to carry a 3 percent interest rate per year, with a three-year grace period and repayment in installments over the next five years.

The government official said, ``The KNTO takes the P-1 level among 10 business credit levels of the Export-Import Bank of Korea that screens and lends the cooperation fund. In case of P-1, a credit-loan is possible to borrow money without collaterals. ``

He added by saying, ``The decision on the fund will be made within this week then there will be no problem to fulfill the agreement with North Korea. It seems that the meeting between South and North to discuss on the matter of the Mt. Kumgang land-route travel project will be resumed next month depending on Hyundai-Asan and North Koreans’ agreement.``

Kim Young-Sik spear@donga.com