‘Asia not at risk of another financial crisis’

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The Asian region is not at risk of another financial crisis similar to the 1997 meltdown, a top International Monetary Fund (IMF) official said Wednesday.

Daniel Citrin, IMF's deputy director (Asia Pacific department), said the current situation was completely different from 11 years ago.

He said the region's financial policy, fundamentals and fiscal situation are strong, with little exposure to the subprime crisis in the United States.

"Asian banks are less exposed to the US subprime problem and the situation is not as bad compared to the US," he said on the sidelines of the informal Asean Plus 3 Finance and Central Bank Deputies' Meeting in Danang Wednesday.

Citrin, however, said the economic slowdown in the US and other major economies like Europe and Japan would certainly have some impact on the region.

"There is sign of slower slowdown in some parts of the world. The impact is there, the region is vulnerable but not like in 1997," he said.

The 1997 Asian financial crisis was triggered in July 1997, starting with the baht devaluation in Thailand before spreading to other Southeast Asian countries, including Malaysia, Indonesia and the Philippines and finally hitting South Korea, Hong Kong and China.