Just the Rules in Korean are formal. This English translation of this Rules is certainly not formal and it is given to informational function just. The Ministry of Strategy and Finance is certainly not accountable for the correctness with this English interpretation, together with audience is preferred to mention to your documents that are original Korean. If this English interpretation differs from the others from or inconsistent with all the initial Korean papers, the initial Korean papers will probably be managing.
Guidelines when it comes to continuing State Guarantee of External Debt of Korean Banking institutions (the В“RulesВ”)
Article 1 (Function)
The goal of these guidelines is always to established the range of qualified financial obligation, the range associated with the guarantee, the procedures for the guarantee along with other information on the state guarantee program pursuant towards the В“Approval regarding the State Guarantee regarding the Foreign Currency Debt of Domestic Banks owed to Non-ResidentsВ” passed by the National Assembly (the В“ system В”, in addition to 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 when it comes to 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 developing Bank established underneath the Korea developing Bank Act; (iii) Industrial Bank of Korea established beneath the Industrial Bank of Korea Act; (iv) the Export-Import Bank of Korea established underneath the Export-Import Bank of Korea Act; (v) nationwide 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 foreign branches of a Domestic Bank.|
|(2)||В“ Non-resident В” means В“non-residentВ” (including branches of international banks positioned in Korea) as defined in Article 3, Paragraph 1, Subparagraph 13 of this forex Transactions Act.|
|(3)||В“ Guarantee Obligation В” means the responsibility of this Republic of Korea (the В“RepublicВ”) incurred because of their state Guarantee regarding the Eligible forex financial obligation as defined in Article 3 associated with the Rules.|
Article 3 (Qualified Debt)
Financial obligation denominated in foreign exchange, given 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 likely 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 level of Guarantee)
|(1)||The Minister of Strategy and Finance may issue hawaii Guarantee for the Eligible Foreign Currency Debt of Domestic Banks up to your aggregate optimum outstanding level of US$100 billion or even 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 perhaps perhaps not meet or exceed the relevant restriction for such Domestic Bank as established in Schedule 1 hereto (the В“ Individual Maximum Guarantee Amount В”); supplied , nevertheless , that the Minister of Strategy and Finance may adjust the in-patient optimum Guarantee Amount for Domestic Banking institutions if
such modification is viewed as necessary after consideration of domestic and international economic and currency market conditions, performance of covenants by Domestic Banking institutions because set forth within 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 facets; provided further that the aggregate outstanding number of State Guarantee for many Domestic Banking institutions shall perhaps perhaps perhaps not meet or exceed the Aggregate Maximum Guarantee Amount after such modification.
Article 5 (Term associated with the Guarantee)
|(1)||The Minister of Strategy and Finance can set the expression associated with State Guarantee, which will be within 36 months through the initial date that is effective of Eligible Foreign Currency Debt (in case 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 debt that is guaranteed are payable (at readiness, on planned repayment dates, by acceleration or perhaps) on or before June 30, 2012.|
Article 6 (Application for the Guarantee)
|(1)||A Domestic Bank applying for the State Guarantee (the В“ В” that is applicant can submit an application for their state Guarantee inside the Individual Maximum Guarantee Amount applicable to such Applicant.|
In order 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 form connected hereto as Form 1 and submit it to your Minister of Strategy and Finance; offered , however , that the Applicant may finish and submit the В“Monthly Application for Guarantee ApprovalВ” when you look at the form connected hereto as Form 2 for applications concerning short-term loans, overnight loans, commercial paper as well as other financial obligation being determined become perhaps maybe not suited to single-debt application (A Monthly Application for Guarantee Approval for just about any thirty days will be submitted no later on than the 25 th day regarding the preceding thirty days; provided, nevertheless, that the Minister of Strategy and Finance may set an alternate deadline for the very very first Monthly Application for Guarantee Approval).