2023-12-28 04:11:00
Taeyoung Engineering & Construction, a mid-sized South Korean builder, said Thursday it planned to restructure its debt and authorities quickly announced they were ensuring its problems would not spill over into financial markets.
The country’s 16th largest builder has debt of 4.58 trillion won ($3.6 billion), including loans for project financing, representing less than 1 percent of assets held by local financial institutions. the Financial Services Commission said in a statement.
“The impact on financial markets is limited as the issue was already known and the market situation is stable, but the government plans to significantly strengthen emergency measures to ensure that any negative sentiment does not lead to volatility increased,” the Financial Services Commission said.
The emergency measures include government loan guarantees for Taeyoung’s project financing loans.
The country’s central bank has raised interest rates by a total of 300 basis points since 2021 to contain inflation, leading to a slowdown in the real estate market.
($1 = 1,287.0700 won) (Reporting by Cynthia Kim; Editing by Edwina Gibbs)
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