S. Korea's interest payment to top 15 bln U.S. dollars in 2010
- Source: Xinhua
- [09:13 July 14 2009]
- Comments
South Korea's interest payment for next year will rise to around 20 trillion won (15.2 billion US dollars) as the government seeks for fiscal expansion, government data showed Monday.
According to the data by the Ministry of Strategy and Finance, the South Korean government needs to pay interest on state debt that would reach between 18.9 trillion won (14.4 billion US dollars) and 19.5 trillion won (14.8 billion US dollars).
The government's interest payment for this year, on the other hand, is estimated to be 15.7 trillion won (12 billion US dollars), the data said.
The increase in interest payment can be attributed to expanded government borrowing and other stimulus packages, which the government pushed for in a bid to kick-start the sluggish economy, according to local media.
Meanwhile, state debts amounted to 366 trillion won (278.3 billion US dollars) this year, taking up 35.6 percent of gross domestic product, according to the data.
The government debt is likely to continue increasing, standing above 400 trillion won (304.2 billion US dollars) as the government is to maintain its expansionary macroeconomic policies, local analysts said.