China, Japan, S.Korea vow 'targeted' support for recovery from pandemic (updated)

Mexan

03/05/2021 04:25

* Finmins, cbank chiefs see recovery uneven, downside risks
remain
    * Welcome Chiang Mai currency swap system, seek more
initiatives 
    * Meet ASEAN financial leaders on sidelines of ADB annual
meetings

 (Adds statement, detail)
    By Tetsushi Kajimoto
    TOKYO, May 3 (Reuters) - Finance ministers and central bank
governors from China, Japan and South Korea on Monday vowed
"targeted" measures for those countries most affected by the
COVID-19 pandemic, and committed to foster fiscal and financial
stability.
    In a joint statement issued after a virtual meeting held on
the sidelines of the Asian Development Bank's (ADB) annual
meetings, the ministers pledged to achieve inclusive recovery,
preserve long-term fiscal sustainability and maintain financial
stability.
    Responses to the coronavirus crisis, universal health
coverage, climate change, high-quality infrastructure and debt
transparency and sustainability in emerging Asia are expected to
top the agenda at the ADB gatherings.
    "The regional outlook has improved, with continued policy
support and growing vaccine coverage," the financial leaders
from the three countries said in a statement.
    "However, we should remain vigilant as the economic recovery
has been uneven across and within member economies, uncertain
and subject to elevated downside risks."
    The three Asian economic powerhouses also said they will
explore new initiatives to strengthen the ASEAN+3 regional
financial safety net at the virtual meeting on Monday with the
10-member Association of South East Asian Nations (ASEAN).
    At their last virtual meeting in September, the financial
chiefs from Japan, South Korea, China and ASEAN, a group known
as ASEAN+3, promised to boost the Chiang Mai Initiative
Multilateralisation (CMIM).
    The CMIM plays a crucial role in supporting regional
financial stability by allowing the member economies, which
include the ASEAN+3 and Hong Kong, to tap currency swap lines to
secure currencies in need.
    On Monday, the three parties cited the rising need to
respond to the structural challenges and their profound
implications to regional economic and financial stability.
    They also underscored their commitment to backing open and
rules-based multilateral trade and investment in the region.    

 (Reporting by Tetsushi Kajimoto; Editing by Himani Sarkar &
Shri Navaratnam)
 ((tetsushi.kajimoto@thomsonreuters.com;))