Beijing ASEM result : ASEAN+3 will use reserves to combat financial crisis

Written by Writer on Monday, October 27th, 2008

Beijing ASEM result: ASEAN+3 will use reserves to combat financial crisis

BANGKOK, Oct 26 (TNA) — Thai Deputy Prime Minister Olarn Chaipravat said here Sunday that members of the Association of Southeast Asian Nations (ASEAN) along with China, Japan and South Korea have agreed on allowing members to pool reserves to defend the region against the current financial crisis, which originated in the US and has now spread to Europe.

Mr. Olarn said the initial agreement was made during the sidelines of the Seventh Asia-Europe Meeting (ASEM) which concluded in Beijing on Saturday. Under the initial agreement, all 10 ASEAN members and the ‘Plus Three’ countries will implement the so-called Chiang Mai Initiative (CMI), allowing members access to an emergency fund to help those facing liquidity problems, he said. Details are to be worked out at a meeting in the Philippines on November 12.

The CMI initiative was started after the 1997 Asian financial crisis as the 13 countries pledged at that time to manage short-term liquidity problems and to facilitate the work of other international financial arrangements and international organisations.

The outcome of the next month’s meeting in the Philippines will be submitted to government leaders during the ASEAN summit to be held in Thailand in December, Mr. Olarn said.

The Thai deputy prime minister said that the Chinese government is also ready to provide US$400 million in loans to help finance in Thai government-sponsored mega-projects. (TNA)