ID :
55098
Mon, 04/13/2009 - 09:07
Auther :
Shortlink :
https://www.oananews.org//node/55098
The shortlink copeid
S. Korean lenders to draw up shipper overhaul plans this month: regulator
SEOUL, April 13 (Yonhap) -- South Korea's financial regulator said Monday local
lenders are set to draw up measures to restructure ailing shipping companies by
the end of this month, the latest in a series of bank-led moves to overhaul
struggling sectors.
Local shippers, which had enjoyed a business boom due to rising shipping rates
and high demand, have been feeling the pinch of the global financial crisis and
the slumping economy, with some facing a severe liquidity squeeze.
"The watchdog plans to advise local banks to draw up revamping measures for
troubled shipping lines by the end of this month and to implement them promptly,"
the Financial Services Commission (FSC) said in a report to the National
Assembly.
Local banks are in the process of assessing the health of 37 shippers, and the
government plans to create a fund worth up to 4 trillion won (US$3 billion) to
purchase idle ships from local shipping companies in a bid to boost their sales
and prevent them from being sold at discount prices.
Local shippers owed a combined 16 trillion won to the local financial sector.
The move is part of the ongoing bank-led corporate restructuring drive
encompassing builders, shipyards and shippers to provide much-needed capital to
viable companies by sorting out ailing firms.
Meanwhile, state-run debt clearer Korea Asset Management Corp. (KAMCO) will start
buying part of the trillions of won in property loans extended by local banks and
other financial firms in May in a bid to stem their deteriorating financial
health.
Smaller builders, which borrowed mostly from savings banks to buy property during
the 2005-2006 housing market boom, have been struggling to service their debts.
Concerns have mounted that if a number of such loans turn sour it would undermine
the soundness of the banking sector, dealing a harsh blow to the whole economy.
Property-linked loans by financial firms, excluding savings banks, stood at 69.5
trillion won as of the end of September, 4.7 trillion won or 7 percent of which
had a risk of default, the FSC said.
KAMCO, established in late 1997, has purchased bad debts worth 1.7 trillion won
related to property loans extended by local savings banks.
Meanwhile, Local banks have begun to receive capital injections through a 20
trillion won bank recapitalization fund as non-performing loans are piling up,
compromising their financial health.
sooyeon@yna.co.kr
(END)
lenders are set to draw up measures to restructure ailing shipping companies by
the end of this month, the latest in a series of bank-led moves to overhaul
struggling sectors.
Local shippers, which had enjoyed a business boom due to rising shipping rates
and high demand, have been feeling the pinch of the global financial crisis and
the slumping economy, with some facing a severe liquidity squeeze.
"The watchdog plans to advise local banks to draw up revamping measures for
troubled shipping lines by the end of this month and to implement them promptly,"
the Financial Services Commission (FSC) said in a report to the National
Assembly.
Local banks are in the process of assessing the health of 37 shippers, and the
government plans to create a fund worth up to 4 trillion won (US$3 billion) to
purchase idle ships from local shipping companies in a bid to boost their sales
and prevent them from being sold at discount prices.
Local shippers owed a combined 16 trillion won to the local financial sector.
The move is part of the ongoing bank-led corporate restructuring drive
encompassing builders, shipyards and shippers to provide much-needed capital to
viable companies by sorting out ailing firms.
Meanwhile, state-run debt clearer Korea Asset Management Corp. (KAMCO) will start
buying part of the trillions of won in property loans extended by local banks and
other financial firms in May in a bid to stem their deteriorating financial
health.
Smaller builders, which borrowed mostly from savings banks to buy property during
the 2005-2006 housing market boom, have been struggling to service their debts.
Concerns have mounted that if a number of such loans turn sour it would undermine
the soundness of the banking sector, dealing a harsh blow to the whole economy.
Property-linked loans by financial firms, excluding savings banks, stood at 69.5
trillion won as of the end of September, 4.7 trillion won or 7 percent of which
had a risk of default, the FSC said.
KAMCO, established in late 1997, has purchased bad debts worth 1.7 trillion won
related to property loans extended by local savings banks.
Meanwhile, Local banks have begun to receive capital injections through a 20
trillion won bank recapitalization fund as non-performing loans are piling up,
compromising their financial health.
sooyeon@yna.co.kr
(END)
