SEOUL : South Korea's state-run financial institutions and local securities firms will begin purchasing Project Financing-Asset Backed Commercial Paper (PF-ABCP) on Thursday, a group of the securities firms said on Wednesday, as a part of plans to supply liquidity into the country's money markets.
A special purpose vehicle set up for the PF-ABCP purchasing program will buy up to 1.8 trillion won ($1.33 billion) by May 30, 2023, the Korea Financial Investment Association said in a statement.
Among the program participants, the Korea Securities Finance Corp and the Korea Development Bank will buy 25 per cent each, followed by nine securities firms taking a combined 25 per cent.
Earlier the month, the country's top financial groups agreed with financial authorities to help supply sufficient liquidity to the local money and bond markets through various programmes of a combined 95 trillion won.
In South Korea's money markets, worries about a liquidity crunch heightened after a missed bond payment by the developer of a South Korean theme park last month.
($1 = 1,352.5800 won)