ASEAN raises swap facilities

ASEAN raises swap facilities

JAKARTA (JP): Central banks under the Association of Southeast
Asian Nations (ASEAN) have agreed to raise their short term
liquidity support funds to US$1 billion from $200 million, to
supplement any shortfalls in the fiscal balances of ASEAN
members.

Bank Indonesia (BI) revealed in a press statement that the
central banks reached the agreement at a meeting in Brunei
Darussalam in November last year.

"With the facility, which is known as the ASEAN Swap
Arrangements (ASA), ASEAN countries have access to short term
liquidity support funds (up to six months) carrying low interest
rates," BI's director for foreign affairs Nana Supriatna said.

ASA was established in 1977 by ASEAN's five central banks and
monetary authorities, namely Indonesia, Malaysia, the
Philippines, Singapore and Thailand.

The November meeting also agreed to expand ASA members to the
remaining ASEAN countries Brunei, Laos, Cambodia, Vietnam and
Myanmar. (bkm)