Five major commercial banks have been considering issuing a syndicated loan to help finance South Korean companies’ arms export to Poland, an industry source said Friday.
Last year, South Korean companies secured major deals worth 17 trillion won (US$12.9 billion) to supply K2 tanks, K9 self-propelled howitzers, FA-50 light attack aircraft and Chunmoo multiple rocket launchers to Poland.
Their bids to sign additional contracts worth 30 trillion won with Poland this year have faced obstacles as the state-run Export-Import Bank of Korea (Eximbank) is unable to provide loans and guarantees for the proposed sales after hitting its upper limit from last year’s mega deals.
In a bid to address the lending limit by the state-run bank, five commercial banks — KB Kookmin, Shinhan, Hana, Woori and Nonghyup — have been in talks with the government for financial measures, according to the source.
Source : YNA