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The Fourth Korea Development Finance Corporation Project will cover a portion of KDFC's expected foreign exchange requirements from mid-1973 until mid-1975. The terms of the loan will be similar to those of recent Bank loans to development finance companies. In view of the competence of KDFC's management and staff, its high operational standards, the soundness of its portfolio and its financial position and performance, and so as not to constrain its operations unnecessarily, the Bank Loan Agreement will provide for a debt/equity ratio of 4.5:1 in place of the present limit of 3:1. The free limit will be increased to $750,000 instead of the present $500,000, with an aggregate free limit of 25 percent of the loan amount.
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