South Korean government said that the country's financial markets are set to recover stability this week, Korea Herald reported Monday.
The government's positive forecast came out as it expects overseas investors to regain confidence in South Korean stocks and bonds.
Worries about the market mainly stemmed from foreigners' short-term debt holdings worth of 6.8 trillion won (6.7 billion U.S. dollars) which will mature in September.
Fears of massive outflow of foreign investment after the expiration date lost ground over the weekend, as financial authorities asserted that talk of another financial crisis was exaggerated, the report said.
Credit ratings agencies such as Fitch and Standard N Poor's along with the IMF said that South Korea will not go through a financial crisis, referring to the country's 243.2 billion U.S. dollar worth of foreign reserve as well as the improved financial health.
According to the Financial Supervisory Service, overseas investors' net purchase of South Korean bond reached 1.8 trillion won from September 1st to 4th, supporting the stability of the South Korean market.
South Korea's Finance Minister Kang Man-soo said last week that after Sept. 11 when the Finance Ministry will reissue foreign-currency bonds worth of 1 billion U.S. dollars, the instability of the market will subside.
Source: Xinhua
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