FROM THE OFFICE OF PUBLIC AFFAIRS

I had an encouraging meeting with a high-level Korean delegation today. The Korean government, with the full support of the President-elect, has actively begun to confront many of its critical challenges. Korea's reforms, launched with the IMF's backing, are having a real impact in promoting the kinds of adjustments that are needed to restore confidence and stability. As the Korean delegation acknowledged, however, there is much more to be done and no room for complacency.

I welcome the global effort by private international banks to roll over existing claims on Korean financial institutions for 90 days. It is important that all financial institutions with claims on Korean financial institutions play a constructive role in this process to provide the breathing space necessary to reach a comprehensive, longer-term refinancing agreement.

The challenge now is for these institutions to agree on a voluntary plan that would extend significantly the maturities of foreign claims on Korean financial institutions and provide access to new sources of private external finance.