Eximbank to launch 20 tril fund for virus-hit firms
The headquarters of the Export-Import Bank of Korea in Seoul Yonhap
The Export-Import Bank of Korea (Eximbank) will launch a 20 trillion won ($16.3 billion) emergency fund for local firms suffering financial setbacks from the coronavirus, the state-run lender said Thursday. The move comes after the spread of COVID-19 here is on track to paralyze the export-driven local economy. Companies with a heavy reliance on overseas markets have been hit hardest by the global pandemic.
According to the Eximbank, the fund will help companies particularly in the manufacturing sector ― such as parts and equipment ― overcome liquidity crises.
Earlier last month, the bank allocated 3.7 trillion in special financial aid; but with COVID-19 rapidly spreading nationwide and freezing economic activities here and abroad, calls have grown for the government to expand its financial support to the private sector.
Against a similar backdrop, the lender decided to establish an additional 16.3 trillion won fund for local firms to deal with the virus-related economic crisis. The fund will be used to extend the due dates for existing loans as well as offering new loans.
“We have remained swift and agile in supporting virus-hit companies by establishing the COVID-19 emergency management system in early February, and have since come up with two measures to support companies affected by the pandemic,” an official from the lender said.
(Advertorial)