APEC debates financial reforms

APEC debates financial reforms

LANGKAWI, Malaysia (AFP): APEC central bankers and finance
officials opened talks Thursday to lay the groundwork for the
group's finance ministers to reinforce reforms to hasten an Asian
economic recovery.

Representatives from all 21 economies of the Asia-Pacific
Economic Cooperation (APEC) forum attended the informal talks at
the popular resort island of Langkawi in northwestern peninsular
Malaysia.

Finance ministers of APEC, whose economies account for about
60 percent of world output, meet annually to discuss current
economic and financial themes and other topics proposed by
leaders at their annual summits.

A senior North American finance official told AFP that among
the "main themes" at the talks Thursday were Asia's recovery from
financial and economic turmoil and strengthening the region's
financial sectors.

He said the officials began preparing a joint communique to be
debated and adopted by the finance ministers Sunday at the end of
their two-day meeting.

Deputy U.S. Treasury Secretary Lawrence Summers, nominated to
take over from Robert Rubin who announced his resignation
Wednesday as Treasury Secretary, would arrive here just before
the meeting starts Saturday, officials said.

Summers was expected to reiterate that Asian nations must keep
up the pace of reforms even though they were recovering
satisfactorily from the crisis triggered by rapid currency
declines starting in mid-1997, they said.

Japanese Finance Minister Kiichi Miyazawa is to propose
setting up a new bond market in which Asian countries can raise
funds to aid their recovery with Japanese government backing,
news reports say.

World Bank president James Wolfensohn, International Monetary
Fund managing director Michel Camdessus and Asian Development
Bank president Tadao Chino are also scheduled to attend.

Officials said Thursday's meeting would prepare a host of
issues for consideration by finance deputies on Friday before a
consensus draft communique is forwarded to the ministers.

A World Bank senior economist told AFP that the talks would
also consider strengthening social safety nets for people hit
hard by the crisis, which had caused one of the most severe
recessions in the region.

He added that efforts towards financial and corporate
restructuring as well as reforms proposed under the so-called new
international financial architecture featured prominently in the
talks.

"We will see how APEC can help to increase surveillance of the
banking sector," the economist said.

APEC deputies were also scheduled to meet with representatives
of the forum's Financiers Group, comprising mostly private
bankers, later Thursday.

The Financiers Group will hold a day of talks separately
Friday on the sidelines of the meeting of APEC deputies to
consider proposals to develop bond markets in Asia as another
channel to raise funds to fuel recovery.

Formed in 1989, APEC comprises Australia, Brunei, Canada,
Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New
Zealand, Papua New Guinea, Peru, the Philippines, Russia,
Singapore, South Korea, Taiwan, Thailand, the United States and
Vietnam.