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.