Wednesday, March 18, 2009

EXIM to grant 4trillion won loan to Korean shipbuilders

Seoul: The Export-Import Bank of Korea has decided to loan 4 trillion won of funds in a form of a network loan this year to roughly 5,000 collaborative companies supplying to middle- and large-sized shipbuilders.

President Kim Dong-soo of EXIM Bank on this day compromised such a business contract in Busan with representatives from around ten middle- and large-sized shipbuilders including Hyundai Heavy Industries. Under a network loan system, shipbuilders are recorded as debtors, but actual loan funds are provided to small- and medium-sized cooperative firms. If collaborative firm A supplies raw materials to shipbuilder B, EXIM Bank will grant supply payments to collaborative firm A, but shipbuilder B will be logged as a borrower in an account book. President Kim said: “With an immediate payment settlement by EXIM Bank in replacement of debtors including conglomerates in the near future, cash-strapped cooperative companies are predicted to breathe easier.”
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