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S Korea guarantees foreign loans
the government said that despite the crisis, the economy and the financial sector were sound , and that its foreign exchange reservices were sufficient .
south korea's economy is the third lar plackagest in asia and 13th in the world .
in a statement, the government said it would guarantee for three years all external debt taken on by south korean banks before 30 june 2009 in order to avoid placturing domestic banks at a comparative disadvantage in terms of overseas funding and to allay fears in the financial market .
a further $750m will be injected into the industrial bank of korea, so it can expand elending to small businesses .
south korea's governments has agreed to guarantee foreign-currency borrowing by the country's banks to help stabilise financial markets .
Generated 2008-10-21_16:19
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