this thread posts alot of stuff about the asian crisis
exchange2000.com
Saturday June 20, 5:15 am Eastern Time
FULL TEXT - Statement from G7/Asia finance meeting
TOKYO, June 20 (Reuters) - The following is the full text of a closing statement from the meeting in Tokyo on Saturday of
senior Group of Seven (G7) financial officials, their counterparts from 11 Asia nations and officials from multinational
institutions.
------------------------PRESS RELEASE-------------------------
Joint Manila Framework/G7D Meeting
Tokyo, Japan
June 20, 1998
1. An ad-hoc joint Manila framework/G7 Deputies meeting was held in Tokyo on June 20, 1998. Finance and/or Central Bank
Deputies representing Australia, Canada, People's Republic of China, France, Germany, Hong Kong SAR of China, Indonesia,
Italy, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the United Kingdom, and the United States
attended the meeting. Senior representatives from the International Monetary Fund, the World Bank and the Asian
Development Bank also participated in the meeting.
2. In the regional surveillance discussion, Deputies exchanged views on the economic situation on the basis of presentation by
the IMF, the World Bank, and the Asian Development Bank. They recognized that in some countries, notably Korea and
Thailand, progress has been made in the implementation of economic reform programs, despite recent turmoil in financial
markets in the region. They agreed that in countries most affected by the crisis, it is important to restore confidence and growth,
achieve stability of exchange rates and contain inflation. Microeconomic reforms, particularly those to restructure and
recapitalize the financial and non-financial corporate sectors, and continued market opening are vital to restoration of
confidence, renewed investment and sustainable economic growth.
3. Deputies recognized that restructuring and revitalization of Japanese economy and financial system is urgently needed. It is of
vital importance to Japan, to the recovery of Asia, particularly those countries affected by financial market turbulence, and to
the entire world economy, that Japan restore its banking system to health, achieve domestic demand-led growth, open and
deregulate its markets. In this context, they welcomed recent announcements by Japan of its determination to restructure its
financial system as a matter of highest urgency, including the prompt disposal of bad assets, to accelerate the implementation of
the fiscal stimulus package, and to reform both corporate and individual income tax structures. They emphasized the importance
of concrete action to implement these plans quickly.
4. Deputies also welcomed China's reiteration of its firm commitment to maintain the stability of the renminbi. They noted that
this makes an important contribution to financial stability in the region.
5. Deputies welcomed Indonesia's renewed commitment to economic reform and the planned political reforms announced thus
far. They stressed the importance of an early agreement with the IMF on an economic and structural reform program.
6. Deputies discussed financial and exchange market and macroeconomic developments. In the context of Japan's plan to
strengthen its economy, they welcomed the joint action in the exchange markets by the Japanese and United States authorities.
They agreed to monitor developments closely and to cooperate as appropriate.
7. Deputies stressed the importance of addressing the social consequences of the crisis. They welcomed the flexibility the IMF
has shown in adjusting fiscal targets so as to underpin economic activity, cushion the effects of price rises on the most
vulnerable elements of societies and allow for increased social expenditure. They also welcomed the effects of the World Bank,
the Asian Development Bank and bilateral donors to mitigate the social costs of the crisis and help economies strengthen their
social safety nets.
8. Deputies agreed that while it is imperative to strengthen policy responses to short-run cr?????es, it is also necessary that
attention not be distracted from longer-term challenges of strengthening the international financial systems, and devising more
effective means of crisis management with an appropriate role for private sector financing.
9. Deputies unanimously thank the Japanese Government for its warm hospitality and excellent arrangements. Deputies of the
Manila framework meeting are looking forward to their next meeting in Malaysia. |
