A collapse would have serious financial consequences for the county, which guarantees repayment of $256 million in debt the corporation assumed at its creation.

The South Korean Government agreed to guarantee repayment of the loans, all of which were coming due in a year or less.

Irrevocable letters of credit that guarantee repayment of commercial paper or tax-exempt securities.

The idea is to postpone loan repayments to all in order to guarantee eventual repayment to everyone.

But the talks hinge in part on whether the Seoul Government will guarantee repayment of all debts, public and private.

The German Government has guaranteed repayment of most of that money, and stands to lose billions if the loans go sour.

Faced with economic troubles and growing unrest, Poland declared in March 1981 that it could no longer guarantee repayment on its debt.

Under the new program, the V.A. intends to sell the loans in a series of transactions without guaranteeing repayment.

A construction project is never without such risk, even when a government guarantees repayment of any debts incurred to finance construction.

A rescheduling would put new credits in a separate category guaranteeing prompt repayment.