SEJONG, June 23 — South Korea, China, Japan and 10 Southeast Asian nations strengthened their emergency liquidity program to better cope with possible financial crises, Seoul’s finance ministry said Tuesday.
The move came after a revised agreement of the regional financial safety net, known as the Chiang Mai Initiative Multilateralisation (CMIM), went into effect earlier in the day, the Ministry of Economy and Finance said in a statement.
According to Yonhap News Agency (Yonhap) the 13 nations agreed to revise the agreement in May last year to reinforce financial support, including the flexibility to extend the period of provision under the IMF-linked portion of the CMIM agreement.
They also agreed to add an overarching legal basis for conditionality in order for the CMIM to support members in addressing their risks and vulnerabilities through policy recommendations, as well as financial support.
The CMIM, launched in 2010, refers to the RM1.02 trillion (US$240 billion) pool that can be tapped through currency swap deals in times of financial crisis.
ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, Singapore and Vietnam.
— Bernama
