WB rules out immediate crisis fund for SE Asia

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WASHINGTON, Oct 16 (AFP): The World Bank pledged yesterday to help Asian nations hit by financial turmoil but ruled out immediate prospects for a funding facility for Southeast Asia to cope with the current crisis.
"We stand ready to support all of our member countries across East Asia to deal with the challenges arising from the financial crisis," said Jim Adams, the World Bank's East Asia and Pacific regional vice president.
He said however the bank did not expect a regional fund to be set up for the purpose following a statement by Philippine President Gloria Arroyo that a "standby facility" would be established to help Southeast Asian nations in need of cash.
Arroyo had said in Manila Wednesday that East Asian finance ministers "reached an understanding to establish" the facility during talks last week on the sidelines of the annual meetings of the International Monetary Fund (IMF) and World Bank in Washington.
She said the World Bank had "indicated" it would commit funds to the facility following global turmoil sparked by a US mortgage crisis. One news report quoted her as saying the bank would provide 10 billion dollars.
"While we do not anticipate the establishment of a regional facility and have not discussed commitments of funds at the regional level, numerous discussions with individual governments were held" at the meetings, Adams said.
The talks were "on the impacts of the financial crisis and possible ways we might be able to provide support at the country level," he said.
The World Bank, Adams said, was supporting initiatives of the Association of Southeast Asian Nations (ASEAN) members to share information and develop a "coordinated response" to the financial crisis.
Aside from the Philippines, ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam.
The region was embroiled in a serious financial crisis in 1997-98 and some countries had sought IMF and World Bank help.
Although reforms in East Asian economies resulting from the crisis a decade ago made them more resilient to the impacts of the current global turbulence, they must be prepared to deal with any effects of the turmoil," Adams said.
The IMF said separately Wednesday that it "supports the efforts of the ASEAN countries to strengthen regional cooperation to promote economic and financial stability."
"While we see Asian economies as being well positioned to weather the current turmoil in financial markets, the IMF stands ready to provide funding quickly to its members who might need liquidity support," a fund spokeswoman said.
"The Fund will also be closely engaged in the discussions among the countries and multilateral institutions on the crisis response," she said.