ASEAN+3 to create new financing facility against regional crises

The Republic of Korea (RoK), China and Japan agreed on May 3 to reinforce the regional financial safety net, along with members of the Association of Southeast Asian Nations (ASEAN), by launching a new financing facility programme meant to extend greater support in case of a financial crisis.

According to the RoK’s Ministry of Economy and Finance, the agreement was made during a trilateral meeting of Korean Finance Minister Choi Sang-mok, Japanese Finance Minister Shunichi Suzuki and Chinese Finance Minister Liu Kun held during their meeting in Tbilisi, Georgia.

ASEAN+3 to create new financing facility against regional crises  -0

The RoK's Finance Minister Choi Sang-mok speaks at a trilateral meeting with his Japanese and Chinese counterparts in Georgia. (Photo: Yonhap) 
 

The trilateral meeting took place on the sidelines of the 27th ASEAN+3 Finance Ministers' and Central Bank Governors' Meeting, which brought together top financial officials, and central bankers from ASEAN and the three Northeast Asian countries.The joint statement has affirmed support of parties with the establishment of the Rapid Financing Facility (RFF) and with the incorporation of eligible freely usable currencies as its currencies of choice, as a new facility under the Chiang Mai Initiative Multilateralization (CMIM) and its modalities.

The RFF will be extended without any conditions in case of a crisis caused by such external shocks as a pandemic and natural disasters, officials said, adding that the ASEAN Plus Three nations will revise relevant regulations this year to officially implement the programme next year.

The CMIM is a 240 billion USD pool launched in 2010 that can be tapped through currency swap deals in times of financial crises in the region.

The nations also shared the need to change the CMIM fund into a paid-in capital structure, rather than pledge funding, and agreed to fix a detailed structure by 2025 after an analysis of various models.

At the meeting, the three nations also shared the assessment that the region is expected to grow at a faster clip this year driven by rising exports and solid domestic demand. However, geopolitical tensions, rising global prices of commodities and raw materials, and growing volatility in the foreign exchange market as near-term challenges. As longer-term risks, they cited climate change and population aging.

They vowed to further enhance cooperation and communication with each other as well as with ASEAN countries in the ASEAN+3 Finance Process to work toward robust recovery and sustainable growth in our region while reaffirming their commitment to "the open, free, fair, inclusive, equitable, transparent, and nondiscriminatory rules-based multilateral trading system./.

VNA

World

Singapore dollar hits 10-year high
World

Singapore dollar hits 10-year high

The Singaporean currency (SGD) is trading against the USD at its strongest level in almost a decade, touching new highs in recent weeks amid lower US interest rates coupled with investors' confidence in its resilient economy.

Malaysian retail chains say no to single-use plastic bags
World

Malaysian retail chains say no to single-use plastic bags

Some 16 retail chains across Malaysia have pledged to no longer provide single-use plastic bags to customers from October 1, said Minister of Housing and Local Government Nga Kor Ming at the “Say No to Single-Use Plastics” campaign in Kuala Lumpur on September 26.

Indonesia builds new data centre
World

Indonesia builds new data centre

The Indonesian government is currently constructing a new national data centre (PDN) in Bekasi and will build another two in Batam and Nusantara capital city (IKN), Political, Legal, and Security Affairs Coordinating Minister Hadi Tjahjanto has stated.

Japan continues support for Vietnam’s typhoon relief efforts
World

Japan continues support for Vietnam’s typhoon relief efforts

The Governor of Japan’s Yamanashi prefecture, Nagasaki Kotaro, on September 24 presented the token of 1 million JPY (over 6,900 USD) to the Vietnamese Embassy in Japan to support the country’s disaster relief efforts in the wake of Typhoon Yagi and its subsequent floods and landslides.