SEOUL, July 30 (Yonhap) -- Transactions of repurchase agreements (RPs) among financial institutions grew about 10 percent in the second quarter from a year earlier, data showed Thursday.

The turnover of RP transactions reached 12,513 trillion won (US$8.6 trillion) in the April-June period, up 10.1 percent from last year, according to the Korea Securities Depository (KSD).

An RP allows a borrower to use a security as collateral for a cash loan at a fixed interest rate and buy it back from the lender at a set price at a later date.

The outstanding value of RP transactions stood at 273 trillion won as of end-June, up 7.78 percent from a year earlier, according to the KSD.

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