“We have seen that there are many irrational aspects to the debt-to-income ratio limit” banks apply to residential mortgage borrowers, Kim Dae Ki told reporters yesterday in Seoul, quooted by Bloomberg news as saying.
“While we will maintain the basic framework of the regulation, we concluded that certain irrational parts of the rule should be eased,” he said.
On July 12, South Korea‘s central bank cut its benchmark interest rate for the first tie in three years. From the previous three months, growth in Asia’s fourth largest economy may have slowed to 0.5 percent.
The Bank of Korea’s policy rate cut this month is likely to be followed up with more loosening soon. South Korea’s Finance Ministry said in a statement today that it would provide specifics on measures to stimulate domestic consumption “as soon as possible.”
The plan will be discussed today at an inter-ministerial meeting led by Vice Finance Minister Shin Je Yoon, Kim said yesterday.The Kospi Index (KOSPI) of South Korean stocks fell 2.2 percent as of 12:23 p.m. in Seoul, dropping along with other regional benchmarks on concern Europe’s debt crisis is worsening.
reporter
Park Sae-jin
swatchsjp@ajunews.com