S. Korea calls on N. Korea to repay loansUpdated: 2014-03-21 21:59:30 (KST)
Seoul is calling on Pyongyang to repay millions of dollars in loans that were borrowed years ago.
A South Korean unification ministry official said Friday that the communist regime was due to make a payment of 8.6 million U.S. dollars on Monday, as part of a 80 million dollar loan given to the North back in 2007.
"Should the North fail to make the first repayment on the 24th toward the cost of the raw materials borrowed, we will request that they pay it as of the 25th.”
The loan came in the form of raw materials, that were used to produce clothing, footwear and soap.
With interest included, Pyongyang is due to pay 86 million dollars to the South over the next ten years.
South Korea's state-run Export-Import Bank sent a message to the North last month informing it of its payment obligation, but Pyongyang has yet to reply.
It's not the first time Pyongyang has missed a loan payment.
They've missed several deadlines to pay down 724 million dollars of food loans provided by South Korea 2000 and 2007.
All told, the communist regime is due to repay the South over 931 million dollars by 2037, including principle and interest, for food and raw materials loans.
Kim Hyun-bin, Arirang News.
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