| GEO World|
| IMF welcomes S.Korea bank rescue package|
| Updated at: 0423 PST, Monday, October 20, 2008|
WASHINGTON: International Monetary Fund chief, Dominique Strauss-Kahn, on Sunday welcomed steps by South Korea to join international rescue efforts to shore up banks and markets in the face of a spreading credit crisis.
"The announced guarantee of banks' external liabilities will bring Korea's policies closer in line with advanced countries, including some in the region, and help ease pressures in the local dollar funding market," said Strauss-Kahn, IMF managing director, in a statement.
South Korea on Sunday pledged more than $130 billion to resuscitate its markets dragged down by the global crisis, offering a state guarantee on foreign debt and promising to recapitalize financial firms.