Just the Rules in Korean are formal. This English translation associated with the Rules is certainly not formal and it is given to informational function just. The Ministry of Strategy and Finance just isn’t accountable for the correctness for this English interpretation, together with audience is preferred to mention towards the original papers in Korean. If this English translation is significantly diffent from or inconsistent with all the initial Korean papers, the initial Korean papers will be managing.
Guidelines when it comes to continuing State Guarantee of External Debt of Korean Banking institutions (the В“RulesВ”)
Article 1 (Purpose)
The objective of these guidelines is always to established the range of qualified debt, the range associated with guarantee, the procedures for the guarantee along with other information on the state guarantee system pursuant towards the В“Approval regarding the State Guarantee associated with Foreign Currency Debt of Domestic Banks owed to Non-ResidentsВ” passed by the National Assembly (the В“ Program В”, plus the state guarantee under such system, the В“ State Guarantee В”), relative to the nationwide Finance Act, Enforcement Decree of this National Finance Act as well as the Rules for the handling of State Guarantees.
Article 2 (Definitions)
| (1) | В“ Domestic Bank В” means some of the after banks: (i) Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank, Korea Exchange Bank, Citibank Korea, Standard Chartered First Bank Korea, Pusan Bank, Daegu Bank, Kwang Ju Bank, Kyongnam Bank, Jeonbuk Bank and Jeju Bank, each founded beneath the Banking Act; (ii) the Korea Development Bank established beneath the Korea developing Bank Act; (iii) Industrial Bank of Korea established underneath the Industrial Bank of Korea Act; (iv) the Export-Import Bank of Korea established beneath the Export-Import Bank of Korea Act; (v) National Agricultural Cooperative Federation established underneath the Agricultural Cooperatives Act; and (vi) National Federation of Fisheries Cooperatives established under the Fisheries Cooperatives Act. В“Domestic BankВ” includes international branches of the Domestic Bank. |
| (2) | В“ В” that is non-resident В“non-residentВ” (including branches of international banks situated in Korea) as defined in Article 3, Paragraph 1, Subparagraph 13 associated with Foreign Exchange Transactions Act. |
| (3) | В“ Guarantee Obligation В” means the responsibility of this Republic of Korea (the В“RepublicВ”) incurred due to their state Guarantee regarding the Eligible forex financial obligation as defined in Article 3 of this Rules. |
Article 3 (Qualified Debt)
Financial obligation denominated in foreign exchange, released or lent (including extensions of readiness) with a Domestic Bank between October 20, 2008 and June 30, 2009 and owed to a Non-resident (the В“ Eligible Foreign Currency Financial obligation В”) is supposed to be entitled to the State Guarantee. Forex deposits and debt that is subordinated not be entitled to the State Guarantee.
Article 4 (Maximum number of Guarantee)
| (1) | The Minister of Strategy and Finance may issue their state Guarantee for the Eligible Foreign Currency Debt of Domestic Banks up to your aggregate optimum outstanding quantity of US$100 billion or very same thereto (the В“ Aggregate optimum Guarantee Amount В”). |
The Minister of Strategy and Finance shall make certain that the outstanding guarantee quantity for every single Domestic Bank shall maybe perhaps maybe not go beyond the relevant restriction for such Domestic Bank as established in Schedule 1 hereto (the В“ Individual optimum Guarantee Amount В”); provided , nonetheless , that the Minister of Strategy and Finance may adjust the in-patient optimum Guarantee Amount for Domestic Banking institutions if
such adjustment is regarded as necessary after consideration of domestic and international economic and money market conditions, performance of covenants by Domestic Banks as set forth within the guarantee that is applicable Notices issued pursuant to Article 3 for the guidelines for the handling of State Guarantees as well as other appropriate facets; supplied further that the aggregate outstanding number of State Guarantee for many Domestic Banking institutions shall maybe not surpass the Aggregate Maximum Guarantee Amount after such modification.
| (3) | For purposes of determining perhaps the outstanding quantity of guarantees will not meet or exceed the Aggregate Maximum Guarantee Amount and Individual optimum Guarantee Amount because set forth in Paragraphs (1) and (2) above, correspondingly, the aggregate outstanding guarantee amount for several Domestic Banking institutions together with outstanding guarantee quantity for https://hookupdate.net/local-hookup/greensboro/ every single Domestic Bank shall be determined in line with the day-to-day stability for the amount of the main level of Guaranteed financial obligation (as defined below) and accrued interest (including any standard interest and associated costs) on such amount that is principal. |
Article 5 (Term associated with the Guarantee)
| (1) | The Minister of Strategy and Finance can set the word for the State Guarantee, which will be within 36 months through the initial effective date regarding the Eligible Foreign Currency Debt (in the event of an expansion of readiness, the effective date of these expansion). |
| (2) | The State Guarantee shall succeed just regarding the re payment responsibilities beneath the Guaranteed financial obligation that are payable (at readiness, on planned repayment dates, by acceleration or else) on or before June 30, 2012. |
Article 6 (Application when it comes to Guarantee)
| (1) | A Domestic Bank applying for the State Guarantee (the В“ Applicant В”) can submit an application for their state Guarantee in the Individual Maximum Guarantee Amount applicable to such Applicant. |
To be able to make an application for the State Guarantee prior to Paragraph (1) above, the Applicant shall finish the В“Application for Guarantee Approval (solitary Debt)В” within the type connected hereto as Form 1 and submit it to your Minister of Strategy and Finance; supplied , however , that the Applicant may finish and submit the В“Monthly Application for Guarantee ApprovalВ” when you look at the type connected hereto as Form 2 for applications associated with short-term loans, instantly loans, commercial paper as well as other financial obligation which are determined become maybe maybe perhaps not ideal for single-debt application (A Monthly Application for Guarantee Approval for just about any thirty days will probably be submitted no later on than the 25 th day associated with preceding thirty days; supplied, nevertheless, that the Minister of Strategy and Finance may set an alternative deadline for the very very first Monthly Application for Guarantee Approval).
