ID :
186816
Tue, 06/07/2011 - 04:22
Auther :
Shortlink :
https://oananews.org//node/186816
The shortlink copeid
Regulator stepping up efforts to curb fallout from Greek debt woes
SEOUL (Yonhap) - South Korea's financial regulator said Tuesday it has stepped up scrutiny of foreign funds' cross-border moves in order to shield against debt-ridden Greece's potential insolvency.
Following global credit appraisers' rating cuts on Greece, the world is bracing for the potential default and debt restructuring of the Southeastern European country.
"We are thoroughly monitoring inflow and outflow of foreign funds and other external aspects," the Financial Services Commission (FSC) said, referring to potential fallouts from the Greek fiscal issue.
"No signs of European fund outflow from the local market have been detected yet. However, the country needs to prepare for potential impacts and abnormal effects."
Given the small exposure to five European countries suffering from fiscal instability, local financial firms may face only a limited impact from the euro-zone turmoil, it said.
As of the end of March, domestic financial companies had US$2.63 billion of exposure to Portugal, Ireland, Italy, Greece and Spain, according to the FSC. The amount accounts for only 4.4 percent of local firms' total external exposure.
The regulator also called on local banks and other financial firms to pay special attention to their foreign currency liquidity in order to guard against the burgeoning debt fears.
Following global credit appraisers' rating cuts on Greece, the world is bracing for the potential default and debt restructuring of the Southeastern European country.
"We are thoroughly monitoring inflow and outflow of foreign funds and other external aspects," the Financial Services Commission (FSC) said, referring to potential fallouts from the Greek fiscal issue.
"No signs of European fund outflow from the local market have been detected yet. However, the country needs to prepare for potential impacts and abnormal effects."
Given the small exposure to five European countries suffering from fiscal instability, local financial firms may face only a limited impact from the euro-zone turmoil, it said.
As of the end of March, domestic financial companies had US$2.63 billion of exposure to Portugal, Ireland, Italy, Greece and Spain, according to the FSC. The amount accounts for only 4.4 percent of local firms' total external exposure.
The regulator also called on local banks and other financial firms to pay special attention to their foreign currency liquidity in order to guard against the burgeoning debt fears.
