South Korea’s credit default risk drops to 17-month low, amid easing tensions with North Korea

Latest news

    SEOUL, March 14 (UPI) — South Korea’s credit default risk has dropped to a 17-month low, as the country’s tensions with North Korea have greatly subsided after the Pyeongchang Winter Olympics and an agreement last week to hold an inter-Korean summit.

    According to industry trackers on Wednesday, the premium on the credit default swap (CDS) for the country’s five-year foreign exchange stabilization bonds closed Monday at 41.68 basis points, down nearly 6 percent from the previous session.

    The default risk figure marks the lowest level since Oct. 26, 2016. The bigger the sovereign risk of a country, the higher the premium.

    Finance Minister Kim Dong-yeon on Tuesday noted that the CDS has been falling significantly, Yonhap reported.

    He said the signs of improving relations between the two Koreas as well as between the North and the United States is likely to have a positive impact on the local financial market and the economy.

    “We will use this opportunity to raise [South Korea’s] credibility through international credit rating agencies and as a substantive ground for international cooperation,” he said.

    View the original article: https://www.upi.com/Top_News/World-News/2018/03/14/South-Koreas-credit-default-risk-drops-to-17-month-low-amid-easing-tensions-with-North-Korea/9081521016279/

    After special envoys to North Korea announced last week that the North’s leader Kim Jong-un suggested an inter-Korean summit in late April, South Korea’s credit default risk dropped nearly 20 percent, the Maeil Business Daily reported.

    https://www.upi.com/Top_News/World-News/2018/03/14/South-Koreas-credit-default-risk-drops-to-17-month-low-amid-easing-tensions-with-North-Korea/9081521016279/ to see original story and photos

    In the same category are

    Record number of games without 0-0 draws at 2018 World Cup https://www.upi.com/Sports_News/Soccer/2018/06/23/Record-number-of-games-without-0-0-draws-at-2018-World-Cup/7541529775097/ to see original story and ...
    Air Force contracts SpaceX for satellite launch June 22 (UPI) -- Space Exploration Technologies Corp., or SpaceX, will send a satellite into orbit atop its Falcon Heavy rocket in 2020, the U.S. Air...
    Red Velvet releases ‘Cookie Jar’ music video ahead of new EP June 21 (UPI) -- South Korean girl group Red Velvet returned Thursday with a new music video. The K-pop stars released a video for "Cookie Jar" ahead...
    In photos: This week in Washington President Donald Trump makes remarks as, from left to right, Sen. Lamar Alexander, R-Tenn., Sen. Roger Wicker, R-Miss., and Sen. Mike Crapo, R-Idaho, ...
    Delaware Lottery player uses $10 prize to buy $50,000 winning ticket June 19 (UPI) -- A Delaware woman who won $10 from a scratch-off lottery ticket parlayed her winnings into a $50,000 jackpot by buying another ticket...
    UPI Horse Racing Roundup: Pavel, Blue Prize and Oscar Performance shine Pavel took a step forward with a win in the Stephen Foster, Blue Prize took the Fleur de Lis at Churchill Downs and Oscar Performance gave a performa...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.