ASEAN members agree on fund creation

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Source: CCTV.com | 10-16-2008 08:34

Southeast Asian officials have agreed to create a fund to help ASEAN member countries suffering liquidity problems.

Southeast Asian officials have agreed to create a fund to help ASEAN member countries suffering liquidity  problems.(CCTV.com)

Meanwhile, G-20 members are asking more affluent nations to take into account their concerns when tackling the financial turmoil.

Finance officials from the 10-member Association of Southeast Asian Nations met in Washington DC to broker the deal.

Philippine President Gloria Arroyo said the World Bank initially committed 10 billion US dollars. She called on the IMF, Japan, China South Korea and the rest of ASEAN to also contribute to the fund.

She said it will be used to purchase bad assets and re-capitalize troubled financial institutions in ASEAN countries.

Gloria Macapagal Arroyo, Philippine President, said, "The ASEAN plus three members and the multilaterals welcomed our initiative not only in providing access to financing but also more importantly in boosting confidence in the ASEAN economies."

Philippine President Gloria Arroyo said the World Bank initially committed 10 billion US dollars. (CCTV.com)

Arroyo said details on implementing the plan will be discussed next week in Beijing during the Asia-Europe meeting.

In northeast Asia, Japan will allow the US Fed to provide more cash to its financial institutions to keep money markets operating smoothly. The Bank of Japan's governor said it had revised a dollar-yen swap agreement with the US Federal Reserve, and the Fed will now offer an unlimited amount of dollars to its banks.

Meanwhile, G-20 member states also met on Wednesday and asked rich countries to listen to their concerns while finding solutions to the current financial turmoil.

Brazilian President, Luiz Inacio Lula da Silva, told the summit the developing countries were the victims of a crisis generated by the rich countries.

Editor:Zhang Pengfei