ASEAN+3 Finance Deputy Ministers' Meeting Held, Strengthening the Importance of Korea-China-Japan Solidarity Amid COVID-19

[Asia Economy Reporter Jang Sehee] The Ministry of Economy and Finance announced on the 5th that the Korea-China-Japan Deputy Finance Ministers and Central Bank Deputy Governors Meeting and the ASEAN+3 (Korea-China-Japan) Deputy Finance Ministers and Central Bank Deputy Governors Meeting were held.

Deputy finance ministers and central bank deputy governors from Korea, China, Japan, and the 10 member countries of the Association of Southeast Asian Nations (ASEAN), as well as key officials from the International Monetary Fund (IMF) and the ASEAN+3 Macroeconomic Research Office (AMRO) attended. They discussed major regional financial cooperation issues such as the amendment of the Chiang Mai Initiative Multilateralization (CMIM) agreement and new cooperative research projects.

As the chair country of Korea-China-Japan financial cooperation this year, Korea presided over the Korea-China-Japan Deputy Finance Ministers and Central Bank Deputy Governors Meeting, emphasizing the importance of solidarity among the three countries in the region to overcome the instability of the regional economy and financial markets caused by the recent spread of COVID-19.

At the Chiang Mai Initiative Multilateralization meeting, the direction for amending the agreement was established through discussions on the use of regional currencies for liquidity support and alternative interest rates following the abolition of the London Interbank Offered Rate (LIBOR), and detailed regulations related to the imposition of funding support conditions were completed to enhance the effectiveness of financial support.

Member countries of AMRO approved the '2021 AMRO Organizational Plan (draft)' to enhance regional macroeconomic monitoring and support capabilities for the Chiang Mai Initiative Multilateralization, and urged continued provision of effective policy recommendations to member countries not only in response to the COVID-19 crisis but also in preparation for the post-COVID era.

ASEAN+3 formed and operated preliminary research task forces to specify five new mid- to long-term projects agreed upon at last year's finance ministers' meeting, and shared the preliminary research results of each task force at this deputy ministers' meeting.

AMRO assessed that most countries in the region have fiscal capacity to implement expansionary fiscal policies. However, it recommended focusing stimulus measures on industries and households severely affected by COVID-19 and managing debt levels through the establishment of medium-term fiscal soundness plans.

Chief Representative Heo Jang proposed, "Let us strengthen policy coordination among regional member countries to respond to COVID-19, guarantee essential movements such as economic exchanges, and cooperate to restore the contracted regional trade."

The discussions and decisions of this deputy ministers' meeting are expected to be finalized at the Korea-China-Japan and ASEAN+3 Finance Ministers and Central Bank Governors Meeting scheduled for mid-September.

This content was produced with the assistance of AI translation services.