26/10/2022
Just the Rules in Korean are formal. This English translation of this Rules is maybe not formal and it is given to informational function just. The Ministry of Strategy and Finance just isn’t accountable for the correctness with this English interpretation, and also the reader is recommended to mention towards the documents that are original Korean. The original Korean documents shall be controlling if this English translation is different from or inconsistent with the original Korean documents.
Guidelines for the State Guarantee of External Debt of Korean Banking institutions (the В“RulesВ”)
Article 1 (Purpose)
The goal of these guidelines would be to established the range of eligible financial obligation, the scope for the guarantee, the procedures for the guarantee along with other information on the state guarantee system pursuant into the В“Approval associated with the State Guarantee of this Foreign Currency Debt of Domestic Banks owed to Non-ResidentsВ” passed by the National Assembly (the В“ system В”, and also the state guarantee under such system, the В“ State Guarantee В”), according to the nationwide Finance Act, Enforcement Decree associated with nationwide Finance Act plus 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 underneath the Banking Act; (ii) the Korea developing Bank established beneath the Korea developing Bank Act; (iii) Industrial Bank of Korea established under the Industrial Bank of Korea Act; (iv) the Export-Import Bank of Korea established beneath the Export-Import Bank of Korea Act; (v) nationwide Agricultural Cooperative Federation established underneath the https://hookupdate.net/sugar-daddies-usa/ny/buffalo/ 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 the forex Transactions Act. |
| (3) | В“ Guarantee Obligation В” means the responsibility regarding the Republic of Korea (the В“RepublicВ”) incurred due to their state Guarantee regarding the Eligible forex Debt as defined in Article 3 of this Rules. |
Article 3 (Qualified Debt)
Debt denominated in forex, released or borrowed (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”) are going to be qualified to receive the State Guarantee. Foreign exchange deposits and subordinated financial obligation shall never be entitled to the State Guarantee.
Article 4 (Maximum quantity 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 level 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 maybe perhaps not go beyond the relevant restriction for such Domestic Bank as established in Schedule 1 hereto (the В“ Individual optimum Guarantee Amount В”); supplied , nonetheless , that the Minister of Strategy and Finance may adjust the Individual optimum Guarantee Amount for Domestic Banking institutions if
such modification is viewed as necessary after consideration of domestic and foreign monetary and money market conditions, performance of covenants by Domestic Banking institutions because set forth when you look at the guarantee that is applicable Notices issued pursuant to Article 3 associated with the guidelines for the handling of State Guarantees along with other appropriate factors; supplied further that the aggregate outstanding level of State Guarantee for several Domestic Banking institutions shall perhaps maybe not meet or exceed the Aggregate Maximum Guarantee Amount after such modification.
| (3) | For purposes of determining whether or not the outstanding number of guarantees will not surpass the Aggregate Maximum Guarantee Amount and Individual optimum Guarantee Amount because set forth in Paragraphs (1) and (2) above, correspondingly, the aggregate outstanding guarantee quantity for several Domestic Banking institutions therefore the outstanding guarantee amount for every single Domestic Bank shall be determined on the basis of the day-to-day balance associated with the amount of the key number of Guaranteed financial obligation (as defined below) and accrued interest (including any standard interest and relevant costs) on such amount that is principal. |
Article 5 (Term associated with the Guarantee)
| (1) | The Minister of Strategy and Finance can set the definition of associated with the State Guarantee, which will be within 3 years through the initial effective date associated with 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 underneath the Guaranteed financial obligation that are payable (at readiness, on planned repayment dates, by acceleration or elsewhere) on or before June 30, 2012. |
Article 6 (Application for the 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 optimum Guarantee Amount applicable to such Applicant. |
To be able to submit 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 into the Minister of Strategy and Finance; supplied , however , that the Applicant may finish and submit the В“Monthly Application for Guarantee ApprovalВ” into the form connected hereto as Form 2 for applications concerning short-term loans, instantly loans, commercial paper as well as other financial obligation which are determined become perhaps maybe not ideal for single-debt application (A Monthly Application for Guarantee Approval for just about any month will be submitted no later on than the 25 th day for the preceding thirty days; supplied, nevertheless, that the Minister of Strategy and Finance may set a unique deadline when it comes to very very first Monthly Application for Guarantee Approval).