Asean+3 assistance fund now $240bn

The expanded Asean+3 financial assistance pool under the amended Chiang Mai Initiative Multilateralisation (CMIM) Agreement took effect on Thursdaym its size doubling to US$240 billion.

The Bank of Thailand announced on Thursday the implementation of the amended CMIM agreement signed by the  central bank governors and financial ministers of Asean countries, China, Japan, South Korea and Hong Kong. The agreement is intended to offer liquidity relief to troubled member states.

As a result, the pool funding of Asean+3 has doubled  from US$120 billion to US$240 billion. The IMF-delinked assistance portion rises from 20% to 30%, and financial aid can be offered to protect a member state from an economic crisis, instead of the grouping waiting for such a crisis to happen before lending a helping hand.

The Bank of Thailand said the agreement was evidence of stronger financial cooperation in the region and of efforts to protect the economies of member countries.

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