Gov't to expand loan guarantee coverage for SMEs, exporters

SEOUL, Feb. 12 (Yonhap) -- The government said Thursday that it will expand loan
guarantee coverage to help small-sized businesses and exporters cope with a
liquidity shortfall caused by the worldwide economic slump.

The Financial Services Commission said after the emergency economic policy
meeting chaired by President Lee Myung-bak that the support measures will be
maintained up until the end of the year to help companies unable to secure fresh
loans from banks.
The new measures call for state-run credit insurers to guarantee 100 percent
payment on loans extended to small and medium-sized enterprises (SMEs), exporters
and people trying to set up new businesses.
The global financial crisis brought on by the collapse of U.S. investment bank
Lehman Brothers Holdings Inc. last September has caused banks to shy away from
giving loans to SMEs that are more exposed to economic difficulties.
Such developments caused the number of companies filing for bankruptcy to hit 345
in December, the highest level since March 2005. The situation has even forced
relatively competitive businesses to call for government help.
yonngong@yna.co.kr
(END)