| China injects $38 bln into Asian crisis fund |
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| Monday,May 04,2009 Posted: 23:56 BJT(56 GMT) |
| From:Xinhua Article type:Reproduced |
BEIJING, May 4 -- China, Japan and South Korea Sunday finalized details of an emergency 120 billion U.S. dollars liquidity fund to help 13 Asian economies counter the global economic downturn.
The three nations will contribute on a 2:2:1 ratio - 38.4 billion U.S. dollars from China and Japan and 19.2 billion U.S. dollars from South Korea - making up 80 percent of the fund, known as the Chiang Mai Initiative.
Japan has also launched a separate scheme to supply up to 6 trillion yen (61.5 billion U.S. dollars) to support nations hit by the economic crisis.
Both announcements were made on the Indonesian island of Bali, on the sidelines of the Asian Development Bank's (ADB) annual meeting.
South Korean Minister of Finance Yoon Jeung-hyun told reporters after a meeting with counterparts from China and Japan that Beijing and Tokyo would each contribute 32 percent to the regional initiative.
South Korea would provide 16 percent, while the rest would come from the 10-member Association of South East Asian Nations (ASEAN), he said.
The fund will give emergency balance of payments support to any country experiencing the kind of capital flight that marked the Asian financial crisis of 1997-98.
"The three countries have reached an agreement, recognizing the importance of our cooperation in the region," said Yoon.
The deal between the key players over what would be the region's first anti-crisis fund makes it likely all countries involved would conclude negotiations on the initiative by the end of the day. ASEAN includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
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