Japan's funds for ASEAN

Japan's funds for ASEAN

PRAGUE (Dow Jones): Japan announced on Monday that it will provide funds to the Association of Southeast Asian Nations, or ASEAN, to help set up an office that will manage Chiang Mai Initiative activities.

The Chiang Mai Initiative is a regional financing arrangement that the 10 ASEAN members plus China, South Korea and Japan are aiming to finalize in November. Under the initiative, members will be able to swap foreign exchange reserves should their currencies face sudden turbulence.

"The purpose of (the fund provision) is to set up an ASEAN office that will implement the Chiang Mai Initiative," said Yoshitaka Murata, Japan's state secretary for finance, at a news conference following a meeting of ASEAN nations plus China, South Korea and Japan.

Murata didn't say how much Japan will give to ASEAN. But another MOF official said that the amount won't be large and likely be around Y100 million.