World Bank commits $10 bln. to standby facility for S.E. Asia: Arroyo

Asian Economic News, Oct 20, 2008

MANILA, Oct. 15 Kyodo

Philippine President Gloria Macapagal-Arroyo said Wednesday the World Bank will contribute $10 billion to a standby facility to assist Southeast Asian countries with severe liquidity problems amid the global financial crisis.

''The WB indicated that it could initially commit to $10 billion as its contribution to the standby facility,'' Arroyo said.

The president said the World Bank and the International Monetary Fund will draft an implementing mechanism for the standby facility soon after consultations with finance ministers and central bank governors of the 10-member Association of Southeast Asian Nations.

''Immediately thereafter, they will convene another meeting to discuss the guidelines for the facility, which we suggested should be quick disbursing with minimal conditions,'' she said.

Arroyo said she hopes the IMF, the Asian Development Bank, Japan, China and ASEAN members will contribute significant amounts to the fund.

On Monday, Arroyo called on ASEAN member countries and their three Northeast Asian dialogue partners -- Japan, China and South Korea -- to convene a meeting at the sidelines of next week's Asia-Europe Meeting in Beijing to map out a ''coordinated approach'' to the current credit crunch.

Also she urged the Group of Seven leading economies to consider poor countries in their plans to avert a worldwide economic meltdown.

''I am asking developing and emerging economies to unite and come up with coordinated approach to cushion the impact of a collapse of highly developed economies,'' she said.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.