MANILA, Philippines — The Philippines will be hosting the Annual Meeting of the Asian Development Bank (ADB) Board of Governors slated on May 2 to 5 at the Philippine International Convention Center (PICC).
Finance ministers and central bank heads of the 10-member Association of Southeast Asian Nations (ASEAN) with China, South Korea and Japan, or ASEAN+3, are expected to tackle proposals to increase a pool of funds under a regional currency swap pact when it meets in Manila on the sidelines of Manila 2012.
Prior to ASEAN+3 Finance Ministers Meeting, the Philippines will also host bilateral meetings of Finance Ministers and Central Bank Governors of ASEAN+3, along with their deputies.
The expected key agenda in the meeting is a proposal for the ASEAN+3 countries to double the regional currency swap pool from the current $120 billion to act as a buffer amid uncertainties over the European debt crisis.
The currency swap scheme known as the Multilateralized Chiang Mai Initiative took effect on March 24, 2010 during an ASEAN+3 Finance Ministers Meeting. The initiative was established as a crisis resolution facility in countries with relatively small foreign exchange reserves by giving them a safety net against liquidity shortages.
The ASEAN+3 meeting will also serve as a venue for the economic ministers to exchange views on economic and financial policy issues in East Asia and other issues of mutual interest. The ASEAN+3 economic ministers are also expected to tackle issues on the region's banking and finance, financial and capital markets; customs; insurance and taxation; and public finance.
The ministers and the central bankers will release a Joint Ministerial Statement on the progress of implementation of ASEAN+3 cooperation initiatives and policy directions towards achieving financial stability in the region.
After the Asian financial crisis in the late 90's, East Asian countries realized the need to promote regional financial cooperation. At the ASEAN+3 Summit in November 1999, the ASEAN+3 Leaders agreed to strengthen policy dialogue, coordination and collaboration on financial, monetary and fiscal issues of common interest.
The economic ministers also focused initially on issues related to macroeconomic risk management; enhancing corporate governance; monitoring regional capital flows; strengthening banking and financial systems; reforming the international financial architecture; and enhancing self-help and support mechanisms in East Asia through the ASEAN+3 framework, including the ongoing dialogue and cooperation mechanism of the ASEAN+3 finance and central bank leaders and officials.
Thereafter, the ASEAN+3 Finance Ministers have been meeting regularly to discuss issues of common interest to provide policy directions on strengthening cooperation and facilitation in the area of finance.
Upon the instruction of the ASEAN+ 3 Leaders, the Finance Ministers of ASEAN+3 meet at the fringes of the ADB Annual Meetings in late April or early May of every year. The first meeting was in May 2000 in Chang Mai, Thailand.
Last year, the meeting of the ASEAN+3 Finance Ministers was held in Hanoi, Vietnam, where it was decided that the next meeting of the group will be held in Manila to include the Governors of ASEAN+3 Central Banks and monetary authorities.
source: mb.com.ph
