S. Korea's short-term foreign debt risks fall to lowest after 2008 crisis

Short-term foreign debt risks in South Korea weakened to the lowest since the 2008 global financial crisis, central bank data showed Monday.

The country's foreign debts totaled 418.9 billion U.S. dollars at the end of March, down 6.5 billion dollars from three months earlier, according to the Bank of Korea (BOK).

Short-term foreign debts with a maturity of less than a year stood at 112.8 billion dollars as of end-March, taking up 26.9 percent of the total. It was down from 27.1 percent three months ago.

After peaking at 51.9 percent in September 2008 when the 2008 financial crisis erupted, the short-term debt ratio kept a downward trend and fell below 30 percent in 2013.

The ratio of short-term external debts to foreign reserves, which measures the country's debt-servicing capability, fell from 31.7 percent as of end-2014 to 31.1 percent as of end-March, the lowest since the 2008 crisis.

The Finance Ministry said in a separate statement that the declines in both short- and long-term foreign debts indicated an improved soundness and debt-serving capability, noting that it will closely monitor the possible rate hikes in the United States. Endi