Seoul unwilling to accept IMF money: presidential aide

WASHINGTON, Nov. 15 (Yonhap) -- South Korea has no plan to draw short-term loans
from the International Monetary Fund (IMF) despite repeated lending proposals
from the world's largest financial regulatory body, a South Korean government
official said Saturday.
The official, who accompanied President Lee Myung-bak on his trip to the U.S. to
attend the Group of 20 summit, disclosed that the IMF has on several recent
occasions urged Seoul to accept unconditional loans under the so-called
"Short-Term Liquidity Facility (SLF)" program. The SLF is designed to help
emerging economies with a record of sound policies address fallout from the
unfolding global economic crisis.
"The South Korean government has no plan to apply for the IMF's short-term loan
program, though the organization has repeatedly proposed to offer unconditional
loans to Seoul," the official told reporters on condition of anonymity.
The SLF funds approved by IMF Executive Board in late October come with no
conditions attached once a loan has been approved and offers large upfront
financing to help countries restore confidence and combat financial contagion, he
explained.
President Lee also mentioned the requests from the IMF, saying at a press
briefing earlier Saturday after the Group of 20 summit, "IMF Chairman (Dominique)
Strauss-Kahn told me the use of IMF money by countries like Korea would help
improve the IMF's image. But my government won't draw any loan from the IMF for
fear of any misunderstanding about Korea's financial conditions."
Thus far, Lee has instead urged the world's richest countries, including the U.S.
and Japan, to expand currency swap deals with South Korea and other emerging
economies.
ycm@yna.co.kr
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