CHIANG MAI INITIATIVE MULTILATERALISATION PACT COMES INTO EFFECT WEDNESDAY

KUALA LUMPUR, March 24 (Bernama) -- The finance ministers and central bank
governors of the Asean member states, as well as China, Japan and South Korea
(Asean+3) and the Monetary Authority of Hong Kong, China, said the Chiang Mai
Initiative Multilateralisation (CMIM) Agreement has come into effect Wednesday.

The total size of the CMIM is US$120 billion (US$1=RM3.29), said the
Ministry of Finance and Bank Negara Malaysia (Central Bank of Malaysia) in a
joint statement.

They said with the core objectives to address balance of payments and
short-term liquidity difficulties in the region and to supplement the existing
international financial arrangements, the CMIM would provide financial support
through currency swap transactions among CMIM participants in times of liquidity
need.

"Each CMIM participant is entitled, in accordance with the procedures and
conditions set out in the agreement, to swap its local currency with US dollars
for an amount up to its contribution multiplied by its purchasing multiplier,"
they said.

The CMIM, a multilateral currency swap contract which covers Asean+3
members, is developed from the current Chiang Mai Initiative bilateral swap
network to facilitate prompt and simultaneous currency swap transactions through
establishing a common decision-making mechanism under a single contract.

The successful launch of the CMIM, together with an independent regional
surveillance unit to be established, demonstrated the solid commitments and
concerted efforts of Asean+3 members to further enhance regional capacity to
safeguard against downside risks and challenges in the global economy, they
said.

China contributed US$38.4 billion (contribution of China excluding Hong Kong
was US$34.2 billion with purchasing multiple of 0.5, while Hong Kong alone
contributed US$4.2 billion with purchasing multiple of 2.5).

Japan contributed US$38.4 billion with purchasing multiple of 0.5, while
South Korea contributed US$19.2 billion with purchasing multiple of 1.

Among Asean countries, Indonesia, Thailand, Malaysia and Singapore each
contributed US$4.77 billion with each with purchasing multiple of 2.5
respectively.

The Philippines contributed US$3.68 billion with purchasing multiple of 2.5,
Vietnam (US$1 billion with purchasing multiple of five), Cambodia (US$120
million with purchasing multiple of five) and Myanmar (US$60 million with
purchasing multiple of five).

Brunei and Laos contributed US$30 million each with purchasing multiple of
five respectively.

-- BERNAMA