China concerned by SE Asian chaos

China concerned by SE Asian chaos

BEIJING (Reuters): China is concerned about Southeast Asia's financial crisis but thinks it is temporary, a foreign ministry spokesman said yesterday.

But the spokesman, Tang Guoqiang, declined to say whether China would provide financial support to Indonesia.

"We are concerned about the financial crisis in Southeast Asia, but we think the difficulty facing Southeast Asia is temporary," he told a regular news briefing.

Tang did not give a direct answer when asked whether China would provide financial support to Indonesia.

But he urged international financial institutions to lend a helping hand.

"Indonesia's difficulty is temporary," Tang said.

"We hope all countries, especially international financial institutions -- including the IMF -- can provide support to these countries."

The International Monetary Fund (IMF) last Friday announced a $23 billion package for Indonesia to help stabilize its currency, but the bailout package was estimated to be worth up to $40 billion after other donors contributed.

World Bank President James Wolfensohn said on Monday he believed the worst of Southeast Asia's crisis was over and that no other countries in the region needed large aid packages for now.

Shock waves from an economic crisis that erupted in Thailand have rolled over Southeast Asia over the past four months, driving down currency values and share prices.