ID :
26506
Sat, 10/25/2008 - 15:34
Auther :
Shortlink :
https://oananews.org//node/26506
The shortlink copeid
BOK pours US$1.4 bln into brokerages, asset managers
SEOUL, Oct. 24 (Yonhap) -- South Korea's central bank said Friday it provided 2 trillion won (US$1.4 billion) to local securities houses and asset managers through repurchase agreement deals in a bid to help ease their cash crunches.
The Bank of Korea (BOK) said it bought 28-day repurchase agreement deals from
Korea Securities Finance Corp., which provides financing to securities-related
institutions. The agency in turn released the money to cash-strapped securities
houses and asset managers.
Currently, the BOK's repurchase agreement deals cover Treasuries, securities
whose repayment is guaranteed by the government and currency stabilization bonds.
"We expect that the move will help ease jitters in the stock and financial
markets," said Chung Hee-chun, director general of the BOK's financial markets
department. "The BOK plans to make more efforts to stabilize the markets
preemptively and aggressively if deemed necessary," he added.
According to the BOK, it would be the longest period of the time for the central
bank to provide liquidity through repurchase agreement operations. It was also
the first time for the BOK to pump liquidity to securities-related institutions
in this way since the 1997-98 Asian financial crisis.
The move came one day after the country's financial watchdog said South Korea is
considering measures to provide liquidity to securities firms, asset managers and
other institutional investors in a bid to help stabilize the local stock market.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) plummeted 10.57
percent to 938.75, falling below the psychologically important 1,000-point mark
for the first time in 40 months. The Korean currency closed at 1,422 won to the
greenback, down 13.2 won from Thursday, hitting an over 10-year low.
The government pledged Sunday to offer three-year guarantees of up to US$100
billion for foreign debts that local banks bring in between late October and June
of next year, and to inject $30 billion into dollar-starved lenders and
companies.
The BOK said Tuesday it has decided to buy back currency stabilization bonds
worth 700 billion won before maturity in a bid to provide Korean won liquidity to
the market.
sooyeon@yna.co.kr
(END)
The Bank of Korea (BOK) said it bought 28-day repurchase agreement deals from
Korea Securities Finance Corp., which provides financing to securities-related
institutions. The agency in turn released the money to cash-strapped securities
houses and asset managers.
Currently, the BOK's repurchase agreement deals cover Treasuries, securities
whose repayment is guaranteed by the government and currency stabilization bonds.
"We expect that the move will help ease jitters in the stock and financial
markets," said Chung Hee-chun, director general of the BOK's financial markets
department. "The BOK plans to make more efforts to stabilize the markets
preemptively and aggressively if deemed necessary," he added.
According to the BOK, it would be the longest period of the time for the central
bank to provide liquidity through repurchase agreement operations. It was also
the first time for the BOK to pump liquidity to securities-related institutions
in this way since the 1997-98 Asian financial crisis.
The move came one day after the country's financial watchdog said South Korea is
considering measures to provide liquidity to securities firms, asset managers and
other institutional investors in a bid to help stabilize the local stock market.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) plummeted 10.57
percent to 938.75, falling below the psychologically important 1,000-point mark
for the first time in 40 months. The Korean currency closed at 1,422 won to the
greenback, down 13.2 won from Thursday, hitting an over 10-year low.
The government pledged Sunday to offer three-year guarantees of up to US$100
billion for foreign debts that local banks bring in between late October and June
of next year, and to inject $30 billion into dollar-starved lenders and
companies.
The BOK said Tuesday it has decided to buy back currency stabilization bonds
worth 700 billion won before maturity in a bid to provide Korean won liquidity to
the market.
sooyeon@yna.co.kr
(END)
