Just the Rules in Korean are formal. This English translation associated with the Rules is certainly not official and it is given to informational purpose just. The Ministry of Strategy and Finance is certainly not accountable for the correctness of the English interpretation, and also the audience is preferred to mention to your original papers in Korean. If this English interpretation differs from the others from or inconsistent aided by the initial Korean papers, the initial Korean documents will probably be controlling.
Guidelines for the continuing State Guarantee of External Debt of Korean Banking institutions (the В“RulesВ”)
Article 1 (Function)
The objective of these guidelines is always to established the range of qualified financial obligation, the range regarding the guarantee, the procedures for the guarantee as well as other information on the continuing state guarantee system pursuant towards the В“Approval regarding the State Guarantee for the 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 the nationwide Finance Act plus the Rules for the handling of State Guarantees.
Article 2 (Definitions)
|(1)||В“ Domestic Bank В” means some of the banks that are following (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 underneath the Korea developing Bank Act; (iii) Industrial Bank of Korea established underneath 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 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 positioned in Korea) as defined in Article 3, Paragraph 1, Subparagraph 13 regarding the forex Transactions Act.|
|(3)||В“ Guarantee Obligation В” means the responsibility associated with the Republic of Korea (the В“RepublicВ”) incurred as a consequence of their state Guarantee regarding the Eligible forex financial obligation as defined in Article 3 of this Rules.|
Article 3 (Qualified Debt)
Financial obligation denominated in foreign exchange, granted or lent (including extensions of maturity) with a Domestic Bank between 20, 2008 and June 30, 2009 and owed to a Non-resident (the В“ Eligible Foreign Currency Debt В”) will be eligible for the State Guarantee october. 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 quantity of US$100 billion or very same thereto (the В“ Aggregate Maximum Guarantee Amount В”).|
The Minister of Strategy and Finance shall make sure the guarantee that is outstanding for every single Domestic Bank shall perhaps maybe not surpass the relevant limitation 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 in-patient optimum Guarantee Amount for Domestic Banks if
such modification is regarded as necessary after consideration of domestic and international economic and money market conditions, performance of covenants by Domestic Banking institutions because set forth into the guarantee that is applicable Notices issued pursuant to Article 3 for the Rules for the handling of State Guarantees along with other appropriate facets; provided further that the aggregate outstanding level of State Guarantee for several Domestic Banking institutions shall maybe maybe not go beyond the Aggregate Maximum Guarantee Amount after such modification.
|(3)||For purposes of determining whether or not the outstanding level of guarantees will not go beyond 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 as well as the outstanding guarantee amount for every single Domestic Bank shall be determined in line with the day-to-day stability associated with amount of the key number of Guaranteed financial obligation (as defined below) and accrued interest (including any standard interest and relevant costs) on such principal amount.|
Article 5 (Term of this Guarantee)
|(1)||The Minister of Strategy and Finance can set the expression associated with the State Guarantee, which will be within 36 months through the initial date that is effective of Eligible Foreign Currency Debt (in the event of an expansion of readiness, the effective date of these extension).|
|(2)||The State Guarantee shall succeed just as to the payment responsibilities underneath the Guaranteed financial obligation that are payable (at readiness, on planned repayment dates, by acceleration or else) 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 make an application for their state Guarantee within the Individual optimum Guarantee Amount applicable to such Applicant.|
To be able to make an application for the State Guarantee according 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 towards the Minister of Strategy and Finance; offered , however , that the Applicant may finish and submit the В“Monthly Application for Guarantee ApprovalВ” within the type connected hereto as Form 2 for applications associated with short-term loans, instantly loans, commercial paper along with other financial obligation being determined become maybe maybe not ideal for 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 time associated with the preceding thirty days; supplied, nevertheless, that the Minister of Strategy and Finance may set an unusual deadline for the very first Monthly Application for Guarantee Approval).