Asia-Pacific finance ministers to focus on turmoil, G15 opts out<\/p>\n
KUALA LUMPUR (AFP): Asia-Pacific finance ministers plan to
\ndiscuss steps to make currency trading more transparent and
\ndevelop prudential and disclosure standards for financial markets
\nduring their two-day meeting next week, a senior Malaysian
\nofficial said Thursday.<\/p>\n
Clifford Herbert, secretary-general of the finance ministry,
\nsaid the meetings of 15 ministers and their deputies would also
\ndiscuss regional surveillance and financing arrangements,
\nincluding a specific fund for ASEAN.<\/p>\n
In a related development, Clifford said finance ministers from
\nthe Group of Fifteen (G15) developing nations would not attend
\nnext week's meeting as announced earlier this month at the end of
\ntheir annual summit in Malaysia.<\/p>\n
Instead, the G15 ministers will meet \"early next year\" as next
\nweek's schedule clashes with a meeting of Latin American finance
\nministers.<\/p>\n
Members of the G15 \"asked us to consider whether we could
\ndefer it,\" Herbert told a news conference. \"We didn't want to
\nclash.\"<\/p>\n
Herbert said finance ministers from Australia, Myanmar, Hong
\nKong, Indonesia, Malaysia, the Philippines, Singapore and
\nThailand would attend the two-day meeting from next Monday, along
\nwith vice ministers from Brunei, China, Japan, South Korea, Laos,
\nthe United States and Vietnam.<\/p>\n
Deputy governors from the Reserve Bank of Australia, The
\nPeople's Bank of China and the Hong Kong Monetary Authority will
\nalso attend, as well as senior officials from central banks of
\nMyanmar, Indonesia, Japan, South Korea, Malaysia, the
\nPhilippines, Singapore and Vietnam, another official said.<\/p>\n
\"These meetings will enhance the credibility of ongoing
\nefforts to restore stability and confidence in the region,\"
\nHerbert said, referring to the recent collapse of several Asian
\ncurrencies and tens of billions of dollars in IMF-led bailout
\nfacilities for Thailand, Indonesia and possibly South Korea.<\/p>\n
Herbert said the meetings, which also include International
\nMonetary Fund managing director Michel Camdessus, would \"discuss
\nthe current economic situation faced by member countries and
\nexchange views on the causes and extent of the currency crisis
\nand policy responses to restore stability.\"<\/p>\n
Among major issues to be discussed are the importance of
\n\"enhancing transparency in currency trading\" and the need for
\n\"developing prudential and disclosure standards in financial
\nmarkets,\" Herbert said.<\/p>\n
Also on the agenda are regional initiatives towards
\nestablishing a \"regional surveillance and financing arrangement,\"
\nhe added.<\/p>\n
Camdessus will meanwhile \"report on the progress of the IMF
\nstudy on hedge funds and their role in market dynamics,\" he said,
\nadding that ASEAN finance ministers would hold bilateral talks
\nwith Japan and the United States.<\/p>\n
\"Japan is expected to brief the meeting on the Japanese
\neconomic situation and present their perspectives on efforts to
\nrestore stability in the region.<\/p>\n
\"Similarly, the United States will also present their views on
\nthe current situation and the role the United States can play to
\nrestore stability.\"<\/p>\n
Herbert said ASEAN finance ministers would also discuss the
\nidea of a specific fund for the Association of Southeast Asian
\nNations.<\/p>\n
\"We haven't discussed the modalities yet,\" he said, adding
\nthat this was \"something ministers have to decide among
\nthemselves.\"<\/p>\n
But the ASEAN fund \"won't be very large\" and will be \"just for
\nconfidence building,\" he said. \"It's an ASEAN initiative.\"<\/p>\n
Clifford said the fund would be \"different\" from an Asian
\nsupplementary financing facility involving the IMF. \"The Asian
\nsupplementary financing facility is not a fund but a commitment,\"
\nhe said.<\/p>\n
The facility proposed in Manila effectively killed off
\nproposals by Japan and some ASEAN countries including Malaysia
\nfor an Asia-wide fund not necessarily linked to the IMF to help
\nbail out distressed economies.<\/p>\n
Known as a \"cooperative financing arrangement\", the facility
\nis designed to be used in exceptional circumstances to augment a
\ncountry's reserves, supplementing traditional IMF instruments and
\ninvolving larger amounts to be lent at rates closer to those
\nprevailing in the market.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asia-pacific-finance-ministers-to-focus-on-turmoil-g15-opts-out-1447899208",
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