© Reuters. FILE PHOTO: The Vice Prime Minister of the Sud-Coréen Ministry and the Ministry of Economy and Finance Choo Kyung-ho helps à la réunion des ministres des Finances du G20 à Nusa Dua, sur l’île balnéaire Indonesienne de Bali, le 15 July 2022 .Sonny Tumbelaka/Pool via REUTERS

SÉOUL (Reuters) – The South Korean government will extend its corporate bond purchase program among other measures to provide liquidity in a context of growing concerns about credit crunch on bond and money markets. in court term.

The government will double the ceiling of its corporate bond purchase facility managed by public banks to 16,000 billion won ($11 billion), Economy and Finance Minister Choo Kyung- ho.

La mesure vise à attenuer la volatilité et les crainités de liquidityrestraintes sur les marchés obligataires et monétaires à short terme, a declarée Choo après une reunion avec de hauts responsable financiers, dont le governor de la banque centrale et le chief de la réglementation.

The cash bills issued by the title companies will be included in the purchase list of the facility, while 3,000 billion won of additional liquidity will be provided by the Korea Securities Finance Corp to the title companies connoisseur of liquidity shortages. at-il declared.

The monetary policy council of the Banque de Corée will also envisage its own measures, such as the reactivation of a special vehicle to buy corporate bonds and cash bills introduced for the first time during the pandemic, he said Le Gouverneur Lee Chang-Yong aux journalists.

But the premises of the macroeconomic monetary policy are unchanged because this problem is temporary and particular to the market of commercial paper, he declared.

The signs of tension on the short-term monetary market of South Korea give rise to growing concerns, as the central bank raised its directorate rate by 250 basis points since August of last year, against a record level of 0.5 % to contain inflation.

The official end-of-day yield of 91-day commercial paper is 4.25% on Friday, compared to 1.55% at the beginning of the year, the spread on the bank’s central bank interest rate has widened to 125 points. de base vs. 48 points de base sur le même période.

Pour aider à apaiser la situation, la Commission des services financiers a declarée judi qu’elle retarderait de six mois un plan visant à normaliser les exigences imposed aux banques pour detenir davantage d’actifs liquides.

En outre, le fonds de stabilization du marché obligataire sud-korean recommencera à acheter des bonds d’entreprises et des billets de tressoire d’une valeur allant jusqu’à 1,600 milliards de wons à partir de lundi.

($1 = 1,428,3200 won)