Asian nations pool US$80 billion to address short-term liquidity problems

MADRID: A group of Asian nations agreed Sunday to create a pool of at least US$80 billion (worth about euro52 billion) for addressing short-term liquidity difficulties.

Finance ministers of the Association of Southeast Asian Nations plus Three _ Japan, South Korea and China _ said in a statement that the region faces risks amid turmoil in international foreign exchange markets as well as oil and commodity price spikes.

ASEAN countries will contribute 20 percent of the amount, while Japan, South Korea and China will put up the rest, the ministers said.

The group released the statement during the Asian Development Bank's annual meeting in Madrid. It said the agreement on pooling currency had resulted from talks on expanding the so-called Chiang Mai Initiative, by which Asian nations have set up bilateral contracts to supply funds through currency swap lines.