S. Korean banks' long-term borrowing rises in July

SEOUL, Sept. 22 (Yonhap) -- South Korean banks' long-term foreign currency
funding climbed in July from a month earlier as a rebounding local currency and
expanding current account surpluses boosted their ability to borrow overseas, the
nation's financial watchdog said Tuesday.

A combined ratio of 15 local lenders' foreign-currency borrowing with more than
one-year maturity stood at 133.6 percent against their total foreign overseas
lending as of the end of July, up 5.6 percentage points from the previous month,
the Financial Supervisory Service (FSS) said in a report.
"The increase in medium-to-long term foreign currency borrowing is expected to
reduce jitters on local lenders' ability to repay their foreign debts," the FSS
said.
Concerns that South Korean banks may become unable to refinance maturing
short-term debts plunged the South Korean won to a 11-year low in early March,
limiting their access to overseas credit markets.
The financial regulator attributed the improvement in banks' funding condition to
continued surpluses in the nation's current account and the local currency's
resurgence.
pbr@yna.co.kr
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