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

    Chiefs QB Patrick Mahomes looks to stay sharp against 49ers Kansas City quarterback Patrick Mahomes has been the talk of the league after the first two games, and he will try to keep it going on Sunday against ...
    3 homeless men beaten to death in Los Angeles in one week Sept. 21 (UPI) -- Three homeless men have been beaten to death in Los Angeles this week and police are investigating whether the murder are connected....
    U.N. report: Colombia’s coca plant production reached record levels in 2017 Sept. 20 (UPI) -- Production of coca, the plant used to make cocaine, rose to its highest level ever in 2017, despite billions of dollars spent by the...
    12 dead babies found in boxes, bags during Kenyan hospital raid Sept. 19 (UPI) -- The governor of Nairobi, Kenya is calling for drastic hospital reforms after he found 12 dead babies stuffed in bags and boxes durin...
    Breida gives 49ers hope for ground game The San Francisco 49ers entered the season with some questions about their ground game after starting running back Jerick McKinnon suffered an ACL inj...
    ICE officer arrested on sodomy, incest charges Sept. 17 (UPI) -- A deportation officer with Immigration and Customs Enforcement in Oregon was arrested and charged on 10 counts of sodomy and one cou...

    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.