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UPDATE 1-Key Asian nations finalise details on crisis fund

Published 05/02/2009, 09:55 PM
Updated 05/02/2009, 10:00 PM

(Updates with quotes, more details)

NUSA DUA, Indonesia, May 3 (Reuters) - Japan, China and South Korea have finalised details of an emergency $120 billion liquidity fund for 13 Asian nations, South Korean Finance Minister Yoon Jeung-hyun said on Sunday.

The agreement between the key players of what would be the region's first anti-crisis fund now makes it likely that the 13 countries involved will conclude negotiations on the plan by the end of the day.

Finance ministers of the three nations decided on the details of the fund on the sidelines of the Asian Development Bank's (ADB) annual meeting being held on the Indonesian resort island of Bali.

"The three countries have reached an agreement today, recognising the importance of our cooperation in the region," Yoon told reporters after a meeting with his counterparts from Japan and China.

An official at the South Korean finance ministry told Reuters the other 10 countries -- members of the Association of South East Asian Nations (ASEAN) -- were most likely to also finalise details on the fund.

"(The 10 countries) have already reached a sort of agreement between themselves and were waiting for the other three countries to finalise details," said the official.

Yoon told reporters China and Japan will each contribute 32 percent of the fund, while South Korea will provide 16 percent. The rest will come from the 10 ASEAN members -- Indonesia, Malaysia, the Philippines, Thailand, Brunei, Myanmar, Cambodia, Laos, Vietnam and Singapore.

The second South Korean official also said the fund, which is being created as a single facility to replace a web of bilateral currency swap arrangements between the 13 countries, could officially be activated near the end of this year.

One each from the three north Asian countries and the ASEAN members will rotationally chair the scheme, while a surveillance secretariat will be created to supervise it with the help of the ADB, the official said.

(Reporting by Yoo Choonsik; Editing by Raju Gopalakrishnan and Tomasz Janowski)

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