SEOUL (Reuters) - South Korea’s central bank on Friday said its monetary policy committee has approved a lending program to help keep credit flowing to the economy and stabilize the local debt market.
The Bank of Korea will provide financing to a special purpose vehicle that will directly purchase AA-rated and A-rated corporate debt, as well as some BBB rated commercial paper.
The loans worth up to 8 trillion won ($6.6 billion) will be made available on an as-needed basis, the BOK said in a statement.
($1 = 1,204.5100 won)
Reporting by Cynthia Kim; Editing by Shri Navaratnam