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.