News Brief: IMF Completes Review and Approves US$1,022 Million Credit Tranche for Korea
December 14, 1998
IMF Completes Review and Approves US$1,022 Million Credit Tranche for Korea
Alassane D. Ouattara, Deputy Managing Director of the International Monetary Fund (IMF), said today: " I am pleased to announce that in support of the government’s economic program, the IMF’s Executive Board today approved the completion of the fourth quarterly review under the stand-by credit and the release of SDR 725 million (US$1,022 million) credit tranche for Korea. Korea continues to make commendable progress in its efforts to achieve economic recovery. The severe downturn in output has begun to moderate, and there are encouraging signs that the Korean economy will return to positive growth during the course of next year. The Korean won remains stable and interest rates are now at pre-crisis levels. Moreover Korea’s decision, last week to start repaying resources borrowed from the IMF was a reassuring signal to the international community that the country was emerging out of the crisis. But there is little room for complacency. Consumer and investor confidence remains weak. And the speed of the recovery will depend to a great degree on progress in corporate and financial restructuring. I am encouraged by the resolute measures taken by the authorities in accelerating efforts in these two areas. Korea’s program for 1999 aims to build on the economic stabilization gained so far and set the stage for an early, strong and sustained recovery."