The central bank on Monday scrapped regulations barring banks from providing foreign currency-denominated loans to non-manufacturing firms in a bid to spur their investment in facilities. Beginning this week, non-manufacturers will be able to borrow loans denominated in yen and dollars on condition that the money is spent on facilities investment. In August last year, the Bank of Korea (BOK) strengthened lending rules on foreign currency loans as part of efforts to ease the won’s strength against major currencies and made it impossible for non-manufacturing firms to get such loans. The BOK said the revision of foreign currency rules can raise companies’ exposure to risks of currency fluctuations, but at the same time will make it possible for them to manage their loans more flexibly. read more
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