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Subject: Reuters-ASEAN says Japan may make crisis funds permanent 

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ASEAN says Japan may make crisis funds permanent=20
03:13 a.m. Nov 26, 1999 Eastern=20
MANILA, Nov 26 (Reuters) - Japanese officials have agreed to endorse to =
their government a proposal by the Association of Southeast Asian =
Nations (ASEAN) to make permanent Tokyo's multi-billion dollar funds =
available for crisis-hit neighbours.=20

``They agreed to endorse it,'' Philippine Finance Secretary Edgardo =
Espiritu told reporters on Friday, a day after ASEAN finance and central =
bank deputies met their Japanese counterparts and agreed to enhance =
financial cooperation.=20

The funds include the Miyazawa initiative, a $30 billion fund so far =
allocated to South Korea, Indonesia, Thailand, Malaysia and the =
Philippines, as well as the $15 billion Obuchi fund, available on merit =
for project financing, he said.=20

Espiritu said the Japanese officials responded positively to the ASEAN =
proposal to ``institutionalise'' the availability of the funds, which =
Japan set up to help its neighbours recover from the the Asian currency =
crisis that broke out in 1997.=20

``The ministers of finance of the ASEAN feel very strongly that it's =
very vital to institutionalise this kind of support that was given us by =
Japan and make it available again in case there is a recurrence of a =
similar crisis,'' Espiritu said.=20

Philippine Finance Undersecretary Joel Banares, who attended the =
deputies' meeting, said the 10-member ASEAN wanted a fund that would be =
continually replenished if there were withdrawals.=20

``What we mean by permanent is not putting an expiry to its =
availability,'' he said.=20

Espiritu said the proposed permanent fund would have the same functions =
as the two existing ones, such as being available for co-financing of =
projects, direct loans for various programmes, or guarantees for loans =
and bond issues.=20

``The availability will be similar...like the Philippines is using the =
Miyazawa fund for co-financing, and Thailand is using it for corporate =
restructuring,'' Espiritu said, adding that the terms of the fund would =
also be concessional.=20

``We are not just referring to fund assistance, but technical support =
and enhancement of human resource development as well because Japan is =
strong in training,'' he said.=20

He did not respond to questions whether the fund proposed by the ASEAN =
would be available only to its members -- Brunei, Cambodia, Indonesia, =
Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and =
Vietnam -- or to beneficiaries of the present Miyazawa fund.=20

On questions on whether the fund would be funded exclusively by Japan, =
Espiritu said the proposal was in early stages and had yet to be =
discussed at higher levels.=20


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<DIV><FONT face=3DArial size=3D2><FONT size=3D+1><STRONG>ASEAN says =
Japan may make=20
crisis funds permanent</STRONG></FONT> <BR>03:13 a.m. Nov 26, 1999 =
Eastern=20
<P>MANILA, Nov 26 (Reuters) - Japanese officials have agreed to endorse =
to their=20
government a proposal by the Association of Southeast Asian Nations =
(ASEAN) to=20
make permanent Tokyo's multi-billion dollar funds available for =
crisis-hit=20
neighbours.=20
<P>``They agreed to endorse it,'' Philippine Finance Secretary Edgardo =
Espiritu=20
told reporters on Friday, a day after ASEAN finance and central bank =
deputies=20
met their Japanese counterparts and agreed to enhance financial =
cooperation.=20
<P>The funds include the Miyazawa initiative, a $30 billion fund so far=20
allocated to South Korea, Indonesia, Thailand, Malaysia and the =
Philippines, as=20
well as the $15 billion Obuchi fund, available on merit for project =
financing,=20
he said.=20
<P>Espiritu said the Japanese officials responded positively to the =
ASEAN=20
proposal to ``institutionalise'' the availability of the funds, which =
Japan set=20
up to help its neighbours recover from the the Asian currency crisis =
that broke=20
out in 1997.=20
<P>``The ministers of finance of the ASEAN feel very strongly that it's =
very=20
vital to institutionalise this kind of support that was given us by =
Japan and=20
make it available again in case there is a recurrence of a similar =
crisis,''=20
Espiritu said.=20
<P>Philippine Finance Undersecretary Joel Banares, who attended the =
deputies'=20
meeting, said the 10-member ASEAN wanted a fund that would be =
continually=20
replenished if there were withdrawals.=20
<P>``What we mean by permanent is not putting an expiry to its =
availability,''=20
he said.=20
<P>Espiritu said the proposed permanent fund would have the same =
functions as=20
the two existing ones, such as being available for co-financing of =
projects,=20
direct loans for various programmes, or guarantees for loans and bond =
issues.=20
<P>``The availability will be similar...like the Philippines is using =
the=20
Miyazawa fund for co-financing, and Thailand is using it for corporate=20
restructuring,'' Espiritu said, adding that the terms of the fund would =
also be=20
concessional.=20
<P>``We are not just referring to fund assistance, but technical support =
and=20
enhancement of human resource development as well because Japan is =
strong in=20
training,'' he said.=20
<P>He did not respond to questions whether the fund proposed by the =
ASEAN would=20
be available only to its members -- Brunei, Cambodia, Indonesia, Laos, =
Malaysia,=20
Myanmar, the Philippines, Singapore, Thailand and Vietnam -- or to =
beneficiaries=20
of the present Miyazawa fund.=20
<P>On questions on whether the fund would be funded exclusively by =
Japan,=20
Espiritu said the proposal was in early stages and had yet to be =
discussed at=20
higher levels. </P></FONT></DIV></BODY></HTML>

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