FSC to step up support measures for exporters amid deepening Mideast crisis

▲ The emblem of the FSC (Yonhap)

financial regulator-export support

FSC to step up support measures for exporters amid deepening Mideast crisis

SEOUL, March 30 (Yonhap) -- The Financial Services Commission (FSC) pledged Monday to increase policy loans aimed at supporting exporters and the sectors hit by the deepening crisis in the Middle East.

The financial regulator said it will further increase policy loans currently set at some 24 trillion won (US$15.9 billion), depending on the developments in the U.S.-Iran conflict.

According to the FSC, major banks plan to provide more than 53 trillion won in new loans for the companies affected by the regional conflict, and also extend loan maturities and seek ways to reduce their financial burden.

The regulator plans to team up with related agencies to enhance market monitoring. Authorities are also well-positioned to expand an existing market stabilization scheme worth more than 100 trillion won, if needed, it added.

Additionally, authorities plan to step up efforts to prevent problems in shaky sectors from spilling over into the broader financial system, and prod financial firms to strengthen their asset quality and liquidity levels.

The war in the Middle East, which began in late February following U.S.-Israeli strikes on Iran, has shown signs of further escalation, as the Houthis fired missiles at Israel over the weekend as they warned of continued military operations until attacks on Iran stop.

The country's financial market has been roiled by the developments surrounding the U.S.-Iran war.

(END)

(C) Yonhap News Agency. All Rights Reserved