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FROM THE OFFICE OF PUBLIC AFFAIRS November 19, 1997RR-2073
We welcome the announcement in Manila today of the results of the meeting on financial cooperation in Asia, attended by the Finance and Central Bank Deputies of fourteen governments, including the United States. The representatives agreed on a framework for regional cooperation to promote financial stability and on a set of proposals to strengthen the IMFs capacity to respond effectively to financial crises. The United States strongly endorses these proposals, which will assist the countries of the region in meeting successfully the challenges of financial globalization. I would also note the importance we attach to the statement in Manila that the regions strong economic fundamentals provide a basis for confidence that the region will return to robust growth and can continue to benefit from globalization, and that recent market turmoil has not altered the consensus that open capital markets bring significant benefits to an economy. Finally, I would like to emphasize most strongly that the active role we played in shaping this agreement reflects the importance of Asia to the economic and strategic interests of the United States. (See attached fact sheet.)
Summary of Manila Discussions
The "New Framework for Enhanced Asian Regional Cooperation to Promote Financial Stability," announced by Deputies at the conclusion of their two-day meeting, includes the following main components:
Under this cooperative financing arrangement, countries would agree to consider, in consultation with the IMF and on a case-by-case basis, the provision of supplemental financial resources for IMF-supported programs. Such support could be extended in exceptional circumstances to augment a countrys reserves after making use of the resources made available by the IMF, which as a first recourse should take full advantage of the flexibility provided under the exceptional circumstances clause and any new financing mechanisms. This represents a significant signal of the importance of effective cooperation in the region, while preserving the central role of the IMF in responding to financial crises.
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