ASEAN banks consider 'various options'

ASEAN banks consider 'various options'

KUALA LUMPUR (AFP): ASEAN central banks are considering
"various options" to supplement economic adjustment programs
arranged by the International Monetary Fund (IMF), the Malaysian
central bank said yesterday.

Bank Negara Malaysia said the new forum planned to meet
regularly to discuss "regional economic and financial
developments in the global context" as part of their closer
cooperation.

The statement followed an inaugural meeting of deputy
governors from six central banks and monetary authorities.

During the two-day meeting which ended here Wednesday, "the
forum discussed the framework for assessing economic and
financial developments in the region with a view to strengthen
monetary and financial cooperation and to identify potential
risks and policy options," the statement said.

"The forum considered various options for establishing
financial arrangements to supplement IMF adjustment programs and
the relationship of such arrangements with other regional
financing initiatives currently under discussion," it added.

Among the six members of the Association of Southeast Asian
Nations taking part in the meeting, Indonesia and Thailand have
recently concluded financial rescue packages with the IMF.

Other ASEAN central banks participating in the forum are
Brunei, Malaysia, the Philippines and Singapore.

Bank Negara said the IMF director of the regional office for
Asia and the Pacific was also present at the two-day meeting.

The Malaysian central bank said the new forum formalized the
long history of informal consultations and cooperation between
ASEAN central banks.

"Recent developments in financial markets pointed to a need
for a more formal and multilateral policy dialogue among ASEAN
central banks and monetary authorities to discus common policy
issues and concerns and to promote policies that ensure price
stability, sound financial systems and long-term growth in the
region," the statement said.

"Members will share experiences which will help anticipate
economic and financial risks and exchange technical assistance
and policy advice where appropriate on possible solutions to
economic and financial issues.

"The ASEAN central bank forum will also discuss various
options to foster a common ASEAN position in its relations with
other international and regional institutions," the statement
said.

Bank Negara added that deputies would report to central bank
governors and "may highlight relevant issues to the select
committee of ASEAN central bank and finance officials, which is
responsible for discussing issues that require the attention of
the ASEAN finance ministers."

With the exception of Brunei, the countries represented in the
new forum are also members of a wider group of central banks
which includes Australia, China, Hong Kong, Japan, South Korea
and New Zealand.

Known as the Executive Meeting of East Asia and Pacific
(EMEAP) central banks, the 11-member group held its first meeting
of central bank governors in Tokyo last year. A second meeting
was held in Shanghai in July this year.