S.Korea c.bank unveils new lending facility to boost investment

SEOUL, July 24 Wed Jul 23, 2014 9:00pm EDT

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SEOUL, July 24 (Reuters) - South Korea's central bank said on Thursday it would create a 3 trillion won ($2.93 billion) lending facility in September to support capital investment by companies as policymakers strive to shore up the economy.

The Bank of Korea said in a statement it would supply the funds with an annual interest rate of 1.0 percent to lenders, who in turn could lend up to 12 trillion won to companies investing in production facilities.

The central bank's estimates showed early on Thursday that Asia's fourth-largest economy logged its worst quarterly growth in more than a year in the April-June period as private consumption shrank. ($1 = 1025.3000 Korean won) (Reporting by Christine Kim; Editing by Choonsik Yoo and Jacqueline Wong)

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