China injects $38bn into Asian crisis fund
BEIJING. May 4. KAZINFORM. China, Japan and South Korea Sunday finalized details of an emergency $120-billion liquidity fund to help 13 Asian economies counter the global economic downturn; Kazinform refers to China Daily. The three nations will contribute on a 2:2:1 ratio - $38.4 billion from China and Japan and $19.2 billion from South Korea - making up 80 percent of the fund, known as the Chiang Mai Initiative. Japan has also launched a separate scheme to supply up to 6 trillion yen ($61.5 billion) to support nations hit by the economic crisis. Both announcements were made on the Indonesian island of Bali, on the sidelines of the Asian Development Bank's (ADB) annual meeting. South Korean Minister of Finance Yoon Jeung-hyun told reporters after a meeting with counterparts from China and Japan that Beijing and Tokyo would each contribute 32 percent to the regional initiative. South Korea would provide 16 percent, while the rest would come from the 10-member Association of South East Asian Nations (ASEAN), he said. The fund will give emergency balance of payments support to any country experiencing the kind of capital flight that marked the Asian financial crisis of 1997-98. The ADB also plans to counter the crisis by ramping up lending to about $33 billion over the next two years, almost a 50 percent increase on 2007-08. The Manila-based multilateral lender is funded by donations mainly from Japan, the United States and European nations; Kazinform cites China Daily. See www.chinadaily.com.cn for full version.