Australia to help crisis-hit nations

Australia to help crisis-hit nations

CANBERRA (Dow Jones): The Australian government on Monday said it will spend A$50 million over three years to assist members of the Asia-Pacific Economic Cooperation forum hurt by the regional economic crisis, for strengthening their economic and financial management.

Prime Minister John Howard in a statement issued in Canberra said the aid will target countries in need of technical assistance, including China, Indonesia, Thailand, the Philippines, Vietnam, Malaysia, South Korea and Papua New Guinea.

Howard is in Kuala Lumpur for a meeting of APEC leaders.

The economic and financial management initiative will help APEC members take practical measures to strengthen their economic and financial management," Howard said.

"Improved economic governance, and in particular strong supervisory and prudential institutions will be vital to achieving a return to sustainable growth."

Howard said assistance for nations would include training of central bank officials and technical assistance for prudential supervision programs.

The Reserve Bank of Australia has sent officials to offer similar assistance to nations in the region affected by the crisis since it began in mid-1997.

Howard said the A$50 million package will be funded from Australia's existing aid budget, and represents a further contribution by his government to overcoming economic difficulties in the Asian region.

Australia contributed up to US$1 billion apiece to International Monetary Fund-sponsored aid packages for South Korea, Thailand and Indonesia.

Meanwhile, Taiwan's top representative at APEC said on Monday the island's US$300 million aid package for troubled Southeast Asian economies mainly will come from private channels.

Chiang Pin-kung, chairman of the Council for Economic Planning and Development, told Dow Jones Newswires that banks and businesses are the best vehicle for getting money to crisis- struck countries.

"The private sector has a lot of money," he said. "The problem is security" of private investments.

Chiang said Southeast Asia Investment Holding Corp., the government vehicle to disburse the aid, will take stakes in regional companies, primarily through equity investments.