Hopes fade for 'quick fix' to monetary woes<\/p>\n
KUALA LUMPUR (Reuters): Hopes for the quick creation of an
\nemergency rescue fund for ailing Southeast Asian economies faded
\nyesterday as finance officials gathered in Malaysia to debate the
\nregion's financial crisis.<\/p>\n
Ministers attending a meeting in Kuala Lumpur said the depth
\nof the financial crisis and nagging differences over the shape of
\nthe fund would likely prevent the aid from being available until
\nnext year.<\/p>\n
Malaysian Finance Minister Anwar Ibrahim said Asian finance
\nministers would discuss the proposed standby facility at two days
\nof meetings starting today in Kuala Lumpur, but a final decision
\nwould probably be postponed.<\/p>\n
He said there was enthusiasm for the proposed fund, but
\ncountries including South Korea needed to address daunting
\neconomic problems before being able to take a decision.<\/p>\n
\"There are difficulties faced by many member countries... They
\nneed to get their house in order,\" Anwar said, noting South Korea
\nwas still discussing conditions attached to a proposed bailout
\nprogram under the International Monetary Fund (IMF) which was
\nexpected to exceed US$20 billion.<\/p>\n
Asked when the facility might be approved, Anwar said: \"If it
\ncan't be resolved tomorrow, we will have to defer it to the next
\nmeeting, which will probably be held in February.\"<\/p>\n
South Korean Finance Minister Lim Chang-yuel had to cancel his
\nappearance at the meetings in Kuala Lumpur at the last minute
\nbecause of disagreements between negotiators over the final
\ndetails of the IMF program, Malaysian officials said.<\/p>\n
South Korea, Thailand and Indonesia have all turned to the IMF
\nfor ad hoc emergency help to stave off economic collapse.<\/p>\n
Both Japanese Finance Minister Hiroshi Mitsuzuka and U.S.
\nDeputy Treasury Secretary Lawrence Summers canceled their trips
\nto the meeting in what delegates said was a reflection of the
\ndiminishing chances that a decision on a fund would be taken.<\/p>\n
The Group of 15 developing nations also decided not to attend.<\/p>\n
Among those due to attend the meetings was IMF managing
\ndirector Michel Camdessus. The World Bank would be represented by
\nsenior vice president Joseph Stiglitz.<\/p>\n
The proposed Asian bailout fund has been resisted by Western
\nnations led by the United States, which have insisted the IMF
\nplay the central role in the rescue operations and any funds be
\nused in line with stringent IMF conditions.<\/p>\n
The U.S. fears a separate Asian bailout fund could undermine
\nthe IMF and weaken the Asian countries' willingness to adopt the
\ntough economic policies advocated by the Fund.<\/p>\n
But Malaysian Prime Minister Mahathir Mohamad has been
\npressing for a separate fund that would symbolize the region's
\nindependence and commitment to resolving its own problems.<\/p>\n
Delegates from several ASEAN member states expressed
\nmisgivings over Mahathir's proposal, and said they would prefer
\nto continue to tackle the region's problems on a case-by-case
\nbasis instead of creating a permanent fund outside the IMF.<\/p>\n
ASEAN groups Brunei, Myanmar, Indonesia, Laos, Malaysia, the
\nPhilippines, Singapore, Thailand and Vietnam.<\/p>\n
\"What we are saying is to come to each other's aid when
\nrequired,\" a Philippine official said.<\/p>\n
A Singapore official said: \"It won't be an up-front amount.\"<\/p>\n
Japanese Vice Finance Minister for International Affairs
\nEisuke Sakakibara told Reuters as he arrived he was not aware
\nthat an independent ASEAN fund would be discussed, and Tokyo
\nfavored accords reached recently in Manila.<\/p>\n
Senior officials from Asia and the United States stopped short
\nof endorsing the Asian rescue fund in Manila but called for a new
\n\"framework for regional cooperation\" which recognized the central
\nrole of the IMF.<\/p>\n
Related stories on Page 10, 11 and 12<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/hopes-fade-for-quick-fix-to-monetary-woes-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }