Japan announces 30 bil. dlr aid package for Asia.
WASHINGTON, Oct. 3 Kyodo Japanese Finance Minister Kiichi Miyazawa on Saturday announced a 30 billion dollar aid package for four ailing Asian economies to help them get on a growth track and resolve the Asian financial crisis. Miyazawa and Bank of Japan Governor Masaru Hayami Masaru Hayami (速水優, b. March 24, 1925) is a Japanese businessman from Kobe. He graduated from Hitotsubashi University.
The former CEO of the Nissho Iwai Corporation, he later served as governor of the Bank of Japan (BOJ) from 1998 to 2003. unveiled the plan when they met with finance ministers and central bank governors from the five original Association of Southeast Asian Nations Association of Southeast Asian Nations (ASEAN), organization established by the Bangkok Declaration (1967), linking the nations of Indonesia, Malaysia, Philippines, Singapore, and Thailand. (ASEAN ASEAN: see Association of Southeast Asian Nations.
in full Association of Southeast Asian Nations
International organization established by the governments of Indonesia, Malaysia, the Philippines, Singapore, and Thailand in ) members and South Korea. At the opening of the meeting, Miyazawa told the Asian officials, "The package is intended to prevent a deflationary spiral Noun 1. deflationary spiral - an episode of deflation in which prices and wages decrease at an increasing rate and currency gains in value
spiral - a continuously accelerating change in the economy in Asia and achieve the region's early economic recovery." "Exchange markets in Asia have stabilized and foreign-currency reserves have been recovering, but what is to be really overcome now is slack growth rates Growth Rates
The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.
Remember, historically high growth rates don't always mean a high rate of growth looking into the future. and sluggish corporate revenues," Miyazawa said. A joint statement issued after the meeting said the balance of risks
in the world economy has shifted from inflation to recession. "To overcome the current economic difficulties, while avoiding the risk of falling into deflationary spiral, they agreed that it is imperative for the Asian countries to take stimulus measures to put their economy on the path of recovery and sustainable growth," the statement said. The statement also said the stability of exchange rates continues to be important for stable and sustainable economic development. The Japanese and other Asian top financial officials -- from Singapore, the Philippines, Malaysia, Thailand, Indonesia and South Korea -- also agreed to cooperate in promoting corporate and financial sector restructuring. They also confirmed the need for increasing private capital flow to Asian countries, and agreed social safety nets should be established in emerging economies to ease the plight of socially vulnerable people. These Asian officials got together in the U.S. capital to discuss ways to alleviate the Asian financial crisis, which first erupted in Thailand in the summer of last year and spilled over to the entire region. The conference took place at a Washington hotel just before a semiannual meeting of top finance officials of the Group of Seven (G-7) industrial countries. The Japanese aid program calls for the Export-Import Bank Export-import Bank (Ex-IM Bank)
The U.S. federal government agency that extends trade credits to U.S. companies to facilitate the financing of U.S. exports. of Japan to guarantee the debts of three hardest-hit Southeast Asian nations -- Thailand, Indonesia and Malaysia -- and South Korea. The plan will also enable the bank to purchase public bonds from these countries and pay the interest on loans made to them to help them raise funds. The plan is meant to encourage the restructuring of private companies, expedite a cleanup of bad loans, set up social safety nets for the poor and ease credit crunch Credit Crunch
An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. in the troubled countries. Miyazawa told the Asian officials that half of the 30 billion dollars is intended to meet needs for short-term capital, such as trade finance, in the course of economic reform. The remaining 15 billion dollars will be made available for medium- and long-term financial needs for economic recovery in the entire Asian region, Miyazawa told a news conference after the meeting. Japan intends to cooperate closely with multilateral development banks and related countries, especially Asia-Pacific and G-7 countries, in implementing the new initiative, he said. Miyazawa said Japan has no immediate plan to transform the 30 billion dollar disbursement DISBURSEMENT. Literally, to take money out of a purse. Figuratively, to pay out money; to expend money; and sometimes it signifies to advance money.
2. plan into an Asian currency fund as proposed during last year's G-7 financial meeting in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. . "But I would be happy to see such an evolution happen in the course of implementing the plan," he said. International Monetary Fund Managing Director Michel Camdessus Michel Camdessus (born 1 May 1933) was Managing Director of the International Monetary Fund (IMF) from 16 January 1987 to 14 February 2000.
Among the most important events of his tenure was the East Asian financial crisis. welcomed Japan's initiative earlier this week. U.S. Treasury U.S. Treasury
Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Secretary Robert Rubin labeled the package "constructive" in easing Asia's plight at a press conference Friday. But he added the package should not help distract attention from the need for Tokyo's maximum efforts to get bank on a growth track.