Dokyu-sang "Supplementing Corporate Bond and CP Support Programs for Companies with Downgraded Credit Ratings" (Update)
[Asia Economy Reporter Kwangho Lee] Do Kyusang, Vice Chairman of the Financial Services Commission, said on the 3rd, "We will supplement the existing corporate bond and commercial paper (CP) support programs so that companies with downgraded credit ratings can more smoothly raise funds in the market."
Vice Chairman Do stated at the '39th Financial Risk Response Team Meeting' held via video conference on the same day, "Concerns have been raised that companies in vulnerable sectors, which may face credit rating downgrades due to prolonged COVID-19-related sales declines, could experience difficulties in raising funds."
He emphasized, "In principle, the corporate bond and CP markets will operate according to market principles, but we will expand the support limit for the bond-backed debt (P-CBO) program for low credit rating (BB grade) small and medium-sized enterprises, and also broaden the scope of the corporate bond and CP refinancing support program."
He added, "To increase the utilization of the corporate bond and CP refinancing support program, we will support not only refinancing issuance but also new issuance, and support private placement bond issuance for refinancing purposes to actively assist companies facing difficulties in raising funds."
Vice Chairman Do reviewed the 175 trillion won plus alpha (α) financial support program, stating, "We have supported 78.3 trillion won so far to alleviate funding difficulties for small business owners and SMEs."
Hot Picks Today
"Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Not Jealous of Winning the Lottery"... Entire Village Stunned as 200 Million Won Jackpot of Wild Ginseng Cluster Discovered at Jirisan
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
- Supreme Court Orders NH Investment to Pay 7.5 Billion Won to Ottogi... 'Optimus Fund Mis-selling' Confirmed
- "How Did an Employee Who Loved Samsung End Up Like This?"... Past Video of Samsung Electronics Union Chairman Resurfaces
He continued, "The second financial support program for small business owners (7 trillion won) has provided 5.6 trillion won (64%) mainly to the distribution, lodging and food service, and service sectors, which are relatively more affected," and explained, "The support program for tenants in restricted business sectors established in January this year (3 trillion won) has also provided 500 billion won (execution rate 15.7%)."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
