S. Korea plans to sell up to 33.8 trillion won worth currency bonds
October 02, 2013 - 10:35:49 am
SEOUL: South Korea plans to sell up to 33.8 trillion won about or US$31.5 billion worth of currency stabilization bonds next year as it braces for potential increased market volatility, South Korea's Finance Ministry said Wednesday.
Of the total, 15.8 trillion won will be used to pay back maturing bonds, with 2 trillion won assigned to pay back debts earlier than scheduled, according to South Korea's Yonhap News Agency.
The remaining 16 trillion won would be a net growth in currency bond issuance, according to the finance ministry.
It is lower than the 19 trillion won set for this year.
In addition, the ceiling on issuance of such bonds denominated in US dollar was raised from $1 billion for this year to $2.5 billion for next year, the ministry said.
The ceiling on dollar-denominated currency stabilization bonds has been fixed at $1 billion for the previous three years after rising to $6 billion in 2009.
The government issued $3 billion and $1 billion worth of such bonds in 2009 and 2013. (QNA)