PBOC may offer Indonesia credit

PBOC may offer Indonesia credit

BEIJING: China's central bank may provide Indonesia credit to
the tune of US$1 billion if necessary to help the country solve
difficulties in international balance of payment and maintain
financial stability.

This is in line with the Bilateral Swap Agreement between the
People's Bank of China (PBOC) and the Bank of Indonesia, signed
here Tuesday by governors of the two central banks.

PBOC authorities note that the move was to implement the
Chiang Mai Initiative that aims to strengthen cooperative
financing arrangements among the Association of Southeast Asian
Nations (ASEAN) countries and China, Japan and the Republic
of Korea.

And it reflects China's latest efforts to advance the
sustained development of monetary financial cooperation in east
Asia, enhance the region's financial stability and promote the
friendly ties between China and Indonesia.

The PBOC has already signed bilateral swap agreements with
central banks of Thailand, Japan, the Republic of Korea, Malaysia
and the Philippines. -- Bloomberg