ASEAN looking for faster IMF aid, debt rollovers

ASEAN looking for faster IMF aid, debt rollovers

NASUGBU, Philippines (AFP): The ASEAN secretariat is proposing faster implementation of more flexible IMF bail-out programs and debt rollovers to help the region cope with the currency crisis, ASEAN secretary-general Rodolfo Severino said here yesterday.

Severino said some of the ASEAN secretariat's concerns would be raised at a meeting of senior officers of the Association of Southeast Asian Nations, going on in this town outside Manila.

But ASEAN has not yet formally adopted some of these proposals.

"We would like the IMF to accelerate the implementation of its programs for the ASEAN countries, talking basically (about) Indonesia and to be more flexible so that the needs of the poor are taken into account," Severino told reporters.

Asked if the secretariat was seeking easier conditionalities for Indonesia, Severino said "we are not getting into that. That is between Indonesia and the (IMF.)"

But he added that "we are always saying these conditionalities should not cause undue suffering of the poor."

Indonesia, one of the most adversely affected by the regional crisis, has been negotiating with the International Monetary Fund (IMF) over implementation of key reforms that the IMF has set as conditions for the release of a bail-out package.

Severino also said that "maybe the banks should roll over the outstanding debt" of some countries to ease the pressure on their currencies.

He added that banks should continue to honor letters of credit, noting that Indonesia could not import essentials because its letters of credit were not being honored.

He said that Singapore was preparing a campaign to get international support for central banks of different countries to issue guarantees for trade to allow such imports to take place.

This can be done both bilaterally or multilaterally, Severino said although some countries were resisting making it a multilateral effort.

Regarding ASEAN efforts to deal with the crisis within its own membership, Severino cited their efforts to set up a surveillance and monitoring mechanism to watch for impending weaknesses in each other's economies.

He also said they were looking at bilateral assistance between ASEAN members but did not give specifics.

He noted that there was already an arrangement among ASEAN members to conduct trade in each other's currencies in order to save on dollars but said this was dependent on bilateral arrangements.

Senior ASEAN officers took up the effects of the currency crisis on the first day of their meeting on Saturday. The results of this meeting will be used in preparation for forthcoming ASEAN ministerial meetings and a summit.

ASEAN members Indonesia, Malaysia, the Philippines and Thailand, have been directly affected by the regional crisis although all but Indonesia are showing signs of recovery.

ASEAN also includes Brunei, Laos, Myanmar, Singapore and Vietnam.