Top financial leaders of the Association of Southeast Asian Nations have met with their counterparts from Japan, China and South Korea to discuss ways to improve cooperation to cope with financial crises. The meeting was held Friday on the sidelines of the Asian Development Bank’s annual meeting, which is being held in Yokohama. The finance ministers and central bank governors were discussing revisions to the Chiang Mai Initiative, a multilateral currency swap arrangement set up as a means of the regional safety measurement.
The initiative was set up after the crash of the Thai baht in 1997 triggered a regional financial crisis. A statement said Japan proposed during the meeting that a yen-based fund be created to provide up to $40 billion under existing bilateral currency swap agreements.