Confused policies fuel SKorea crisis fears

07/09/2008 16:50:26

South Korea's government is striving to reassure investors that fears of a second financial crisis are groundless.

Financial markets have been disturbed by talk of a "September crisis" when treasury bonds held by foreigners worth six point seven billion dollars mature this week.

For months foreign investors have been bailing out of the stock market, fuelling the won's slide against the dollar.

Analysts partly blame the government's confused policies in the forex market for the uncertainty.

But they say the economy is much stronger than ten years ago, when the International Monetary Fund had to step in with a fifty seven billion dollar bailout to save the country from bankruptcy.
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