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Wednesday, May 2, 2012
PHL to double share to Chiang Mai Initiative to US$ 9
The Philippines is committed to double its share to the Chiang Mai Initiative to US$ 9 billion to help provide additional liquidity to countries in need.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. told reporters Wednesday that the goal is to double the current US$ 120 billion pool of funds to US$ 240 billion.
He said “there's broad support to enhance the facility (thru the) doubling of the amount, improvement of other features like longer maturity, longer availability.”
“ASEAN members will increase contributions,” he said with China, Japan, Korea putting in higher amount.
“(This is) to make the facility more effective as a liquidity safety net, in case there is an external payments (problem) of any member-country,” he said.
Chiang Mai Initiative, created during the ASEAN+3 finance ministers’ meeting in May 2000 in Chiang Mai, Thailand, aims to establish a regional financing facility for the 13 countries in a bid to help a country in crisis.
Under this agreement, signatories are allowed to draw up to 2.5 times their contribution to the pool of fund in cases of financial crisis.
Relatively, Finance Secretary Cesar Purisima told reporters on the sidelines of the Asian Development Bank’s (ADB) 45th Governors Meetings being hosted by the Philippines from May 2-5, 2012 at the Philippine International Convention Center (PICC) and the SMX at SM Mall of Asia, both in Pasay City, said higher funds for the Chiang Mai Initiative “is good for the whole region.”
“It gives us bigger and more flexible, stronger safety nets in case something similar to the Asian Crisis happens again,” he said.
He, on the other hand, pointed out that “given the strength of the balance sheet of the countries in the region I think that’s (another financial crisis in the region) something unlikely.”
“But nevertheless, we always want that added level of security,” he said.
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