Swift Imf Cash Brings Christmas Cheer To South Korea

The IMF moved decisively to shore up Seouls shattered financial markets by announcing swift aid disbursements of $10 billion, but South Koreans had little else to cheer about on Christmas day.

Seoul said yesterday it had agreed to new reforms with the IMF in return for the swift aid by early January to stabilise its floundering financial markets.

Finance Minister Lim Chang-yuel, speaking just after midnight, said the IMF would give $2 billion on December 30. Donor countries under the record IMF bailout programme worth nearly $60 billion would give $8 billion by early January.

The donor money, part of $24 billion the nations had already pledged, was first portrayed as a second line of defence. But three weeks after it was announced, the IMF bailout has failed to calm the markets and many analysts said it was not enough.

South Korean media on Thursday hailed the IMF move as the best Christmas present for the country.

The leading Dong-A Ilbo newspaper ran a headline: Fears of Sovereign Default Washed Away.

But as Koreans marked the Christmas holiday