The Bank of Korea has worked half its way out of the balance sheet implications
of the crisis. In 1999, 6.2 trillion won was repaid by the Financial Market Stabilisation
Fund (Bank of Korea 2001b, p 37). In 2000, Korea First Bank, which had been taken
over by the government in the crisis but was successfully divested to a foreign
partnership, repaid a 1 trillion won loan. These repayments left 7.4 trillion won
aggregate ceiling credits, which, ‘following the currency crisis of 1997, …had come
to be used as a means of easing the corporate credit crunch, making it difficult for
the central bank’s lending system to perform its original inherent function’ (Bank of
Korea 2001b, p 28).31
The Bank of Korea has worked half its way out of the balance sheet implicationsof the crisis. In 1999, 6.2 trillion won was repaid by the Financial Market StabilisationFund (Bank of Korea 2001b, p 37). In 2000, Korea First Bank, which had been takenover by the government in the crisis but was successfully divested to a foreignpartnership, repaid a 1 trillion won loan. These repayments left 7.4 trillion wonaggregate ceiling credits, which, ‘following the currency crisis of 1997, …had cometo be used as a means of easing the corporate credit crunch, making it difficult forthe central bank’s lending system to perform its original inherent function’ (Bank ofKorea 2001b, p 28).31
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