Friday, December 26, 2008

S.Korea bank calls on SAIC to back Ssangyong

Korea Development Bank has called on SAIC Motor Corp to provide fresh funding and payment guarantees to Ssangyong Motor as a condition for extending new loans to the troubled automaker, a KDB official said on Friday.

The official, who asked to remain anonymous, confirmed a report in the Korea Economic Daily that said KDB had told SAIC (600104.SS) and Ssangyong (003620.KS) that the Chinese car company should provide 120 billion won ($91.99 million) in cash to Ssangyong.

In addition, state-owned KDB has called on SAIC, which owns a 51 percent stake in Ssangyong, to guarantee a combined 200 billion won worth of loans from two Chinese banks for the South Korean carmaker.

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