ASEAN says Japan may make crisis funds permanent

ASEAN says Japan may make crisis funds permanent

MANILA (Agencies): Japanese officials have agreed to endorse
to their government a proposal by the Association of Southeast
Asian Nations (ASEAN) to make permanent Tokyo's multi-billion
dollar funds available for crisis-hit neighbors.

"They agreed to endorse it," Philippine Finance Secretary
Edgardo Espiritu told reporters on Friday, a day after ASEAN
finance and central bank deputies met their Japanese counterparts
and agreed to enhance financial cooperation.

The funds include the Miyazawa initiative, a $30 billion fund
so far allocated to South Korea, Indonesia, Thailand, Malaysia
and the Philippines, as well as the $15 billion Obuchi fund,
available on merit for project financing, he said.

Espiritu said the Japanese officials responded positively to
the ASEAN proposal to "institutionalize" the availability of the
funds, which Japan set up to help its neighbors recover from the
Asian currency crisis that broke out in 1997.

"The ministers of finance of the ASEAN feel very strongly that
it's very vital to institutionalize this kind of support that was
given us by Japan and make it available again in case there is a
recurrence of a similar crisis," Espiritu was quoted by Reuters
as saying.

Philippine Finance Undersecretary Joel Banares, who attended
the deputies' meeting, said the 10-member ASEAN wanted a fund
that would be continually replenished if there were withdrawals.

"What we mean by permanent is not putting an expiry to its
availability," he said.

Espiritu said the proposed permanent fund would have the same
functions as the two existing ones, such as being available for
co-financing of projects, direct loans for various programs, or
guarantees for loans and bond issues.

"The availability will be similar...like the Philippines is
using the Miyazawa fund for co-financing, and Thailand is using
it for corporate restructuring," Espiritu said, adding that the
terms of the fund would also be concessional.

"We are not just referring to fund assistance, but technical
support and enhancement of human resource development as well
because Japan is strong in training," he said.

He did not respond to questions whether the fund proposed by
the ASEAN would be available only to its members -- Brunei,
Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand and Vietnam -- or to beneficiaries of the
present Miyazawa fund.

On questions on whether the fund would be funded exclusively
by Japan, Espiritu said the proposal was in early stages and had
yet to be discussed at higher levels.

ASEAN and Japan's Ministry of International Trade and Industry
have also agreed on ways to cooperate in promoting trade and
investment.

Steps will include improving ASEAN's access to new markets
through Japanese networks of trade organizations, and providing
Japanese training in marketing to ASEAN countries, said a joint
statement by MITI officials and ASEAN economics ministers after
they met on the sidelines of this week's ASEAN meetings in
Manila.

Dow Jones reported ASEAN and MITI will work together to
develop electronic commerce in the region and build export
promotion agencies in the Asean bloc, the statement said.