Deposit Insurance Bond Issue Delayed

The government decided yesterday to postpone the issue of the deposit insurance bonds amounting to 1,500 billion won scheduled on 17th in the financial policy consultation meeting presided by Kim Jin-Pyo, Vice Minister of Finance and Economy at Bankers Club, Myung-Dong, Jung-Gu, Seoul.

Vice Minister Kim said, ``The issue of deposit insurance bonds might be a factor to increase the commercial interest rate under the circumstance that the profitability of the corporate bonds has been unstable in the financial market. Thus, the government decided to put off the issue of them.``

However, the government will issue the national bonds of 1,150 billion won as scheduled on 15th.

``As the Bank of Korea recently did not lower the call interest rate, the interest rate once showed the unstable movement. The government is make efforts to stabilize the interest rate controlling the issue of currency stabilization bonds.`` said Vice Minister Kim. ``we prospect that the interest rate will show the stabilizing tendency.``

Park Joong-Hyun sanjuck@donga.com