S. Korea to repay IMF loan

S. Korea to repay IMF loan

SEOUL (AFP): South Korea on Wednesday decided to repay the first 2.8 billion dollar tranche of its International Monetary Fund (IMF) loan which matures on December 18, news reports said.

Foreign exchange reserves are expected to reach 47 billion dollars by the end of this year even after the country reimburses the 2.8 billion dollars, Yonhap news agency said.

"Usable" foreign exchange reserves are expected to surpass 50 billion dollars next year, with the current account surplus predicted to be around 20 billion dollars.

The repayment of the IMF loans on maturity would help improve sovereign credit ratings, leading to a lowering of offshore borrowing rates and a boost for foreign direct investment in the country, officials have said.