A group of eighteen banks has approved a rescue package for part of South Korea's troubled conglomerate, Hyundai.

The decision to help the engineering and construction wing of the company had been anticipated, after the Finance and Economy Minister, Jin Nyum, met officials of the main creditor banks and expressed concern about the impact of the failure of the company on the nation's economy.

The rescue package is worth two-point-two billion dollars.

The company has been in in serious financial trouble since the Asian currency crisis three years ago.

Correspondents say the rescue package means that the company will be virtually nationalised. Creditors say they expect a big reorganisation of management, and the loss of a large number of jobs.

From the newsroom of the BBC World Service