|SUBJECT||Food Loan Repayment by North Korea Overdue|
The Export-Import Bank of Korea, an agency entrusted by the government with the operation of the Inter-Korean Cooperation Fund, sent a notification to Chosun Trade Bank on June 8 that the first payment for a food loan was overdue and that payment for principle and overdue fees should be made immediately.
On May 4, Korea Eximbank notified Chosun Trade Bank that principle repayment of USD 5.83 million for a food loan was due on June 7. So far, Chosun Trade Bank has not responded to the notification.
According to the food loan agreement, fees for overdue principal and interest payment would begin to accrue at an annual rate of 2.0% from the late payment due date until one day before the actual date of payment. Chosun Trade Bank’s failure to resolve its late payment within 30 days of notification will establish grounds for default.