To: John Stinnett who wrote (27800 ) 12/13/1997 6:34:00 AM From: Glenn D. Rudolph Respond to
Treasury denies So.Korea advance money
United Press International - December 13, 1997 02:37
%WASHINGTON %KOREA %IMF %US V%UPI P%UPI
WASHINGTON, Dec. 13 (UPI) - The Treasury Department, wanting to stick
to the terms of a $57 billion rescue package approved recently by the
International Monetary Fund, has turned down South Korea's request for
urgent funds to ease its economic crisis.
Friday's refusal came after the Asian nation asked Japan and the
United States to provide emergency funds - officials in Seoul had asked
Washington to make available immediately its $5 billion contribution to
the package.
White House spokesman Mike McCurry urged South Korea to keep to the
conditions of the deal, such as limits on credit and interest rates. He
said that, ''The United States believes it is very important for the
Republic of Korea to quickly implement those arrangements it has made
with the IMF.''
Other Seoul officials reportedly want the IMF to come up with a
second portion of its loan ahead of schedule, according to the British
Broadcasting Corp.
The IMF has already transferred $5.6 billion to Seoul and is expected
to decide next week on the possibility of handing over a further $3.6
billion.
The South Korean financial catastrophe has caused the value of local
stocks to plummet despite intervention from the country's central bank.
South Korea, the world's 11th biggest economy before its currency -
the won - crashed, asked the IMF last month to help with its banking and
corporate calamities.
The international community approved a package of $35 billion from
the IMF and other financial institutions and more than $20 billion from
the United States, Japan and other industrialized nations.
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Copyright 1997 by United Press International.
All rights reserved.
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