May 3 2009
NUSA DUA, Indonesia (Reuters) - Japan will establish a scheme to supply up to about 6 trillion yen ($61.54 billion) to Asian nations in the event of a financial crisis, Finance Minister Kaoru Yosano said on Sunday.
The yen swap plan will be in addition to Japan's $38.4 billion contribution to a $120 billion regional liquidity fund.
Both measures are aimed at supporting the region's economies in a crisis, Yosano told reporters on the sidelines of the Asian Development Bank's annual meeting in Indonesia.
"This brings our contribution to supporting regional liquidity to about $100 billion," Yosano said.
Japan hopes the yen scheme will also promote the use of the currency in the region, business daily Nikkei reported.
Yosano spoke to reporters following a meeting with the finance ministers of South Korea and China. The three countries on Sunday finalized details of the $120 billion liquidity fund of 13 Asian nations.
South Korean Finance Minister Yoon Jeung-hyun told reporters China and Japan will each contribute 32 percent of the fund, while South Korea will provide 16 percent.
The rest will come from the 10 ASEAN members -- Indonesia, Malaysia, the Philippines, Thailand, Brunei, Myanmar, Cambodia, Laos, Vietnam and Singapore.
In addition to the two initiatives, Yosano said Japan will introduce a framework to guarantee samurai bonds, yen-denominated debt issued in Japan by foreign governments and firms, up to 500 billion yen ($5.13 billion).
Asian finance ministers agreed in February to enlarge a multilateral swap pool under the so-called Chiang Mai Initiative to $120 billion from $80 billion proposed last year to help defend their currencies from the fallout of the global economic crisis.
($1=97.50 Yen)
(Reporting by David Dolan in Nusa Dua and Yoko Nishikawa in Tokyo; Editing by Tomasz Janowski)
NUSA DUA, Indonesia (Reuters) - Japan will establish a scheme to supply up to about 6 trillion yen ($61.54 billion) to Asian nations in the event of a financial crisis, Finance Minister Kaoru Yosano said on Sunday.
The yen swap plan will be in addition to Japan's $38.4 billion contribution to a $120 billion regional liquidity fund.
Both measures are aimed at supporting the region's economies in a crisis, Yosano told reporters on the sidelines of the Asian Development Bank's annual meeting in Indonesia.
"This brings our contribution to supporting regional liquidity to about $100 billion," Yosano said.
Japan hopes the yen scheme will also promote the use of the currency in the region, business daily Nikkei reported.
Yosano spoke to reporters following a meeting with the finance ministers of South Korea and China. The three countries on Sunday finalized details of the $120 billion liquidity fund of 13 Asian nations.
South Korean Finance Minister Yoon Jeung-hyun told reporters China and Japan will each contribute 32 percent of the fund, while South Korea will provide 16 percent.
The rest will come from the 10 ASEAN members -- Indonesia, Malaysia, the Philippines, Thailand, Brunei, Myanmar, Cambodia, Laos, Vietnam and Singapore.
In addition to the two initiatives, Yosano said Japan will introduce a framework to guarantee samurai bonds, yen-denominated debt issued in Japan by foreign governments and firms, up to 500 billion yen ($5.13 billion).
Asian finance ministers agreed in February to enlarge a multilateral swap pool under the so-called Chiang Mai Initiative to $120 billion from $80 billion proposed last year to help defend their currencies from the fallout of the global economic crisis.
($1=97.50 Yen)
(Reporting by David Dolan in Nusa Dua and Yoko Nishikawa in Tokyo; Editing by Tomasz Janowski)
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