ID :
30452
Sun, 11/16/2008 - 06:12
Auther :
Shortlink :
https://www.oananews.org//node/30452
The shortlink copeid
Finance ministers call for reform of global financial institutions By Hwang Doo-hyong
WASHINGTON, Nov. 14 (Yonhap) -- Finance ministers of South Korea, China and Japan on Friday urged reforms of international financial institutions to make them more effective in tackling current and future financial turmoil.
"We also recognized the need for reforms of international financial institutions
and the Financial Stability Forum so that they can be more responsive to the
ever-changing global economic situation and future challenges," the ministers
said in a statement released at the end of their meeting here on the sidelines of
the first G20 economic summit.
South Korean Finance Minister Kang Man-soo and his Chinese and Japanese
counterparts, Xie Xuren and Shoichi Nakagawa, are accompanying their heads of
states here for Saturday's economic summit.
U.S. President George W. Bush hosted a working dinner on Friday for South Korean
President Lee Myung-bak and other heads of state at the White House to officially
start the unprecedented economic summit of 20 advanced and major developing
countries. The meeting aims at enhancing cooperation in stabilizing the global
economy, paralyzed by the U.S. subprime mortgage crisis and ensuing collapse of
major financial institutions.
Bush expressed his hope the meeting would result in an agreed upon framework for
reforming the current financial and regulatory systems and that leaders would
reach consensus on a specific action plan reaffirming free market principles.
In the statement, Kang and two other ministers called for concerted efforts by
advanced and emerging economies, including the three Northeast Asian countries,
to address challenges posed by the current financial turbulence.
All concurred that they needed to be "well-prepared against the adverse effects
of the global financial turmoil and the risks of a further slowdown in the world
economy." They also reiterated their "strong commitment to taking macroeconomic
policy and financial stability measures as appropriate and necessary and
strengthening policy dialogue among the three countries."
The three ministers also concurred on the need to explore a possible increase in
the size of bilateral currency swap arrangements between their respective
countries.
South Korea currently has a US$30 billion currency swap arrangement with the
U.S., a currency line of $13 billion with Japan and a $4 billion currency deal
with China.
The ministers agreed to hold the Workshop on Macroeconomic and Financial
Stability in Tokyo on Nov. 26 to coordinate macroeconomic and financial policies
among their ministries of finance, central banks and financial supervisory
authorities.
They also agreed that working with other ASEAN+3 members on expediting the Chiang
Mai Initiative Multilateralisation (CMIM) was a top priority.
South Korea, China and Japan have agreed with 10 members of the Association of
Southeast Asian Nations to set up an $80 billion fund to help stabilize regional
financial markets, although the three Northeast Asian economic powers have yet to
agree on how to divide the equities.
hdh@yna.co.kr
(END)
"We also recognized the need for reforms of international financial institutions
and the Financial Stability Forum so that they can be more responsive to the
ever-changing global economic situation and future challenges," the ministers
said in a statement released at the end of their meeting here on the sidelines of
the first G20 economic summit.
South Korean Finance Minister Kang Man-soo and his Chinese and Japanese
counterparts, Xie Xuren and Shoichi Nakagawa, are accompanying their heads of
states here for Saturday's economic summit.
U.S. President George W. Bush hosted a working dinner on Friday for South Korean
President Lee Myung-bak and other heads of state at the White House to officially
start the unprecedented economic summit of 20 advanced and major developing
countries. The meeting aims at enhancing cooperation in stabilizing the global
economy, paralyzed by the U.S. subprime mortgage crisis and ensuing collapse of
major financial institutions.
Bush expressed his hope the meeting would result in an agreed upon framework for
reforming the current financial and regulatory systems and that leaders would
reach consensus on a specific action plan reaffirming free market principles.
In the statement, Kang and two other ministers called for concerted efforts by
advanced and emerging economies, including the three Northeast Asian countries,
to address challenges posed by the current financial turbulence.
All concurred that they needed to be "well-prepared against the adverse effects
of the global financial turmoil and the risks of a further slowdown in the world
economy." They also reiterated their "strong commitment to taking macroeconomic
policy and financial stability measures as appropriate and necessary and
strengthening policy dialogue among the three countries."
The three ministers also concurred on the need to explore a possible increase in
the size of bilateral currency swap arrangements between their respective
countries.
South Korea currently has a US$30 billion currency swap arrangement with the
U.S., a currency line of $13 billion with Japan and a $4 billion currency deal
with China.
The ministers agreed to hold the Workshop on Macroeconomic and Financial
Stability in Tokyo on Nov. 26 to coordinate macroeconomic and financial policies
among their ministries of finance, central banks and financial supervisory
authorities.
They also agreed that working with other ASEAN+3 members on expediting the Chiang
Mai Initiative Multilateralisation (CMIM) was a top priority.
South Korea, China and Japan have agreed with 10 members of the Association of
Southeast Asian Nations to set up an $80 billion fund to help stabilize regional
financial markets, although the three Northeast Asian economic powers have yet to
agree on how to divide the equities.
hdh@yna.co.kr
(END)
