As a quick fix, creditors on Friday rolled over 100 billion won ($85 million) of LG's short-term maturing loans by just one day.
Samsung Electronics has announced that it will issue three-year bonds worth 500 million won, or about $390 million, on Aug. 27 to cover maturing loans.
If that can't be done, a toxic mix of declining property prices and maturing loans could lead to fresh losses at many banks.
E.U. diplomats expect Jean-Claude Trichet, president of the European Central Bank, to play a leading role in rounding up pledges to roll over maturing loans back into Greece's coffers.
With banks cutting back on lending to meet more stringent capital requirements, the debt markets have provided companies an opportunity to refinance maturing loans, often at reduced interest rates.
Although deposit growth is slowing, these inflows give banks a cash buffer, allowing them to keep lending, even if their maturing loans are not always repaid in full and on time.A chronic complaintSo China's financial strains will not result in the sort of acute disaster suffered so recently by the West.
Trust companies, together with other nonbank financial institutions like brokerage firms, have become a vital source of credit, allowing banks to arrange off-balance-sheet refinancing for maturing loans that riskier borrowers, like local governments, cannot repay from their internal cash flow.
Since October 1999 the company has managed to bring its debt down from $9.6 billion, but $4.7 billion in maturing loans at the beginning of this year, and the prospect of an additional $600 million later in the year, brought on by the liquidity crunch that will force.
Last fall, the community redevelopment agency approved the sale of the land to Trammell Crow for $15.4 million; the developer would have to pay off the maturing bank loan that had financed the acquisition of the land.
