China indicates support for Southeast Asia during money crisis<\/p>\n
KUALA LUMPUR (AFP): Visiting Chinese Premier Li Peng indicated
\nFriday Beijing's support for Southeast Asia during its currency
\ncrisis, a senior Malaysian official said yesterday.<\/p>\n
Li raised the region's currency woes during talks with
\nMalaysian Deputy Prime Minister Anwar Ibrahim, who is also
\nfinance minister, said Clifford Herbert, secretary-general of the
\nMalaysian finance ministry.<\/p>\n
"I am sure if required China will (give support)... that is
\nwhy they asked about the crisis," Herbert said when asked whether
\nChina would provide further aid to ensure currency stability in
\nthe region.<\/p>\n
Chinese central bank governor Dai Xianglong announced August
\n14 China would provide one billion dollars to an International
\nMonetary Fund-sponsored US$16.7-billion loan for ailing Thai
\neconomy.<\/p>\n
"The fact that China came in to help Thailand showed that they
\nhad a commitment to the region," Herbert told reporters.<\/p>\n
Anwar briefed Li on the currency situation and the region's
\nefforts to combat speculative assaults, he said, adding that the
\nMalaysian minister expressed Malaysia's appreciation for China's
\nconcern.<\/p>\n
Li also told Anwar that Japan could play a bigger role in
\nhelping the region defend its currencies, Herbert said. Japan
\npromised four billion dollars for the IMF loan to Thailand.<\/p>\n
"Li felt that Japan can do a lot more to contribute since a
\nlot of Japanese banks have been affected by the Thai currency
\ncrisis," Herbert said.<\/p>\n
The Chinese official stressed that Hong Kong and China had
\nhuge reserves and that speculators would thus have a hard time
\nattacking Hong Kong's currency, Herbert added.<\/p>\n
Hong Kong enjoys reserves of up to $80 billion. The territory,
\nwhich returned to Chinese sovereignty on July 1, contributed one
\nbillion dollars to the IMF rescue plan for Thailand.<\/p>\n
The IMF package, approved late Wednesday in Washington, is
\nworth a total of $16.7 billion, with four billion dollars as a
\n34-month standby credit from the fund itself.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/china-indicates-support-for-southeast-asia-during-money-crisis-1447893297",
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