E. Asian leaders eye upgraded currency swap scheme

BEIJING, Oct. 24 Kyodo - (EDS: ADDING INFOMRATION ABOUT POSSIBILITY OF FINANCE MINISTERS AND CENTRAL BANKERS
MEETING ON NOV. 12)
East Asian leaders agreed Friday to upgrade an existing currency swap scheme to
defend the regional economy from financial turmoil, while saying the area's
economic sector remains solid despite suffering some impact of the current
turbulence.
The leaders of China, Japan and South Korea as well as the 10-member
Association of Southeast Asian Nations also discussed holding a meeting of the
nations' finance ministers and central bankers as part of efforts to overcome
the current financial crisis.
An ASEAN official said later that work is under way to hold the meeting on Nov.
12 in Manila.
The informal meeting of leaders of the so-called ASEAN-plus-three was held over
breakfast at Beijing's Great Hall of the People ahead of the opening of the
two-day Asia-Europe Meeting being held in the Chinese capital.
On the regional economy, many of the leaders shared the view that while East
Asia has not escaped the impact of the financial turbulence, it has fared
better than some other areas such as Europe, a Japanese government official
said.
''Many said that at this point the regional economy is still firm and economic
growth is continuing,'' the officials said.
The leaders agreed to continue efforts to boost the Chiang Mai Initiative, a
safety net aimed at helping participating countries fight speculative attacks
on their currencies, the Japanese officials and officials from ASEAN said.
Under the currency swap scheme, countries pool their foreign reserves so that
they could be diverted to any participant plunged into foreign exchange crisis.
The 13 countries' finance ministers agreed in May to expand the existing
network from a web of bilateral schemes to a multilateral operation worth $80
billion.
Details for expanding the scheme will be discussed at the meeting of finance
ministers and central bank chiefs as well as at a working group meeting
expected to be held Nov. 12, the ASEAN official said.
The envisioned upgrade would include less regulation and quicker disbursements.
The ASEAN-plus-three countries were aiming to hold the talks ahead of their
summit to be held in Bangkok in December.
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand and Vietnam.
==Kyodo