S.Korea c.bank to collect $1.2 bln in FX loans

SEOUL, Nov 2 (Reuters) - South Korea's central bank said on Monday it would collect all the $1.2 billion in special foreign exchange loans it had extended to local banks when they mature later this week.

The Bank of Korea provided the foreign exchange loans to help ease a foreign-currency liquidity shortage at local banks, using a $30 billion currency swap line formed with the U.S. Federal Reserve.

The Bank of Korea will have an outstanding $1.85 billion in such loans owed by local banks after this week, it said in a statement. (Reporting by Yoo Choonsik; Editing by Jonathan Hopfner)