The Bank of Korea Monetary Policy Committee Extends SPV Corporate Bond and CP Purchase Period Until Year-End

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The special purpose vehicle (SPV) established to respond to the COVID-19 crisis for purchasing corporate bonds and commercial papers (CP) will be extended and operated until the end of this year.

On the 30th, the Monetary Policy Committee of the Bank of Korea held a meeting and announced that the purchase period for corporate bonds and CP by the SPV, which was set to expire on July 13, has been extended until December 31 of this year.

Additionally, it resolved to refinance (extend the maturity) the first loan made on July 23 of last year. The original loan amount of 1.78 trillion won was scheduled to mature on July 23.

The refinancing will be conducted only on the outstanding balance excluding any early repayments made before the refinancing date from the initial loan amount of 1.78 trillion won.

The Bank of Korea decided not to extend the deadline for loan execution to the SPV, which was originally scheduled for July 13. The Bank explained, "The corporate bond and CP markets have shown a relatively stable trend compared to when the SPV was established, and it is judged that the SPV's purchasing capacity will be sufficient until the end of the year."

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