Arroyo backs Asian version of IMF

Philippine President Gloria Arroyo supports wider co-operation in stabilising Asia's financial market, including creating a regional version of the International Monetary Fund (IMF), a report said yesterday. In an interview with Japanese media, she praised as a great success the expansion of the Chiang Mai Initiative (CMI), a currency swap framework to guard against financial crises, the Nikkei business daily said. The scheme, involving the Association of Southeast Asian Nations (Asean), Japan, China and South Korea, was launched in 2000 following the 1997 Asian financial crisis. The Asean-plus-three agreed in May to expand the CMI's size to $120 billion (Dh440bn) from the original $80bn proposed in 2008. Japan and China will each contribute $38.4bn and South Korea $19.2bn. "The Asian bond market initiative is something we should now push," Arroyo said on a visit to meet Prime Minister Taro Aso and business leaders. The Philippine president was referring to efforts by regional governments and private companies to revitalise the regional market by issuing bonds denominated in local currencies. Arroyo said the idea of establishing an Asian version of the IMF should be the next subject to be studied by the region to strengthen its financial stability of the Asian economies. She said she "agrees" with the idea, it added. "I am even in favour of a pan-Asian economic community that would cover not only the East Asian Summit, but other parts of Asia such as the countries in the Middle East, Central Asia, South Asia and Oceania," she said. The East Asian Summit involves 16 countries – 10 Asean states, Japan, China, South Korea, India, Australia and New Zealand. An economic partnership agreement between Tokyo and Manila took effect last December, opening the door for Philippine nurses and caretakers to work in Japan under certain conditions. "I believe after nurses and caregivers, soon we will be able to have English teachers and IT workers," Arroyo was quoted as saying. Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .