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