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)