China indicates support for Southeast Asia during money crisis
China indicates support for Southeast Asia during money crisis
KUALA LUMPUR (AFP): Visiting Chinese Premier Li Peng indicated
Friday Beijing's support for Southeast Asia during its currency
crisis, a senior Malaysian official said yesterday.
Li raised the region's currency woes during talks with
Malaysian Deputy Prime Minister Anwar Ibrahim, who is also
finance minister, said Clifford Herbert, secretary-general of the
Malaysian finance ministry.
"I am sure if required China will (give support)... that is
why they asked about the crisis," Herbert said when asked whether
China would provide further aid to ensure currency stability in
the region.
Chinese central bank governor Dai Xianglong announced August
14 China would provide one billion dollars to an International
Monetary Fund-sponsored US$16.7-billion loan for ailing Thai
economy.
"The fact that China came in to help Thailand showed that they
had a commitment to the region," Herbert told reporters.
Anwar briefed Li on the currency situation and the region's
efforts to combat speculative assaults, he said, adding that the
Malaysian minister expressed Malaysia's appreciation for China's
concern.
Li also told Anwar that Japan could play a bigger role in
helping the region defend its currencies, Herbert said. Japan
promised four billion dollars for the IMF loan to Thailand.
"Li felt that Japan can do a lot more to contribute since a
lot of Japanese banks have been affected by the Thai currency
crisis," Herbert said.
The Chinese official stressed that Hong Kong and China had
huge reserves and that speculators would thus have a hard time
attacking Hong Kong's currency, Herbert added.
Hong Kong enjoys reserves of up to $80 billion. The territory,
which returned to Chinese sovereignty on July 1, contributed one
billion dollars to the IMF rescue plan for Thailand.
The IMF package, approved late Wednesday in Washington, is
worth a total of $16.7 billion, with four billion dollars as a
34-month standby credit from the fund itself.