Cynthia Kim
Seoul, November 28 (Reuters) – South Korea’s central bank and government on Monday rolled out additional relief measures for the local credit market, including a 2.5 trillion won ($1.87 billion) repo operation by the Bank of Korea (BOK) to take effect in December. .
Through repo windows, local financial institutions will be able to borrow funds against collateral at 10 basis points above market interest rates, the BOK and the Ministry of Finance said in a statement.
Monday’s measures came after central banks and regulators coordinated measures to cut corporate bonds and other short-term debt after more than 50 trillion won in measures pledged in October failed to curb a sharp rise in commercial paper yields. It reinforces concerted efforts to prevent a credit crunch that could unsettle financial markets.
The ministry will also inject more from its 20 trillion won bond stabilization fund, expanding support measures to purchase commercial papers and corporate bonds announced in October, as well as asset-backed commercial papers related to real estate projects. Stated.
($1 = 1,334.4800 won)
(Reporting by Cynthia Kim, Chunshik Yoo, Editing by Himani Sarkar)
((Cynthia.Kim@thomsonreuters.com; 822 3704 5655; Reuters message: cynthia.kim.thomsonreuters.com@reuters.net))
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