Asian Crisis fund includes Cambodia

Cambodge Soir

28-10-2008

Asean countries, China, Japan and South-Korea united to fight the economic crisis. It was decided during the ASEM meeting to create a currency exchange fund worth US$80 billion.

The aim of this fund, to start next year, is to remedy against any illiquidity of one of the members country. This could prevent spreading the crisis in the region. Although China, Japan and South-Korea, the three regional powers will finance 80% of the fund, Asean countries such as Cambodia will also benefit from the fund.

This fund is not only created to prevent the crisis but also to present an alternative to IMF loans which in the past were not very popular in Jakarta, Bangkok and Seoul. The IMF loans were only granted against heavy interferences in the economical policy of the above-mentioned countries.