ASEAN+3 to create a new funding mechanism dedicated to emergency situations

Finance ministers and central bank governors from Japan, China, South Korea, and the Association of Southeast Asian Nations have agreed to establish a new facility to provide emergency funds for natural disasters or pandemics.

Key Takeaways

Finance ministers and central bank governors from Japan, China, South Korea, and ASEAN have agreed to establish a new facility to provide emergency funds for natural disasters and pandemics.
The new facility will be set up under the Chiang Mai initiative, with details to be finalized by 2025.
Japan and Pacific island nations also discussed climate change and infrastructure investment, agreeing to maintain close communication to strengthen economic and financial ties.

The facility will be set up under the Chiang Mai initiative and details will be worked out by 2025. This initiative aims to offer prompt support in response to external shocks and address risks such as foreign exchange market volatility. Additionally, finance ministers from Japan and Pacific island nations met to discuss climate change and infrastructure investment, agreeing to maintain close communication to strengthen economic and financial ties.