Monday, May 4, 2009

Japan may give Asian countries more than $ 100 billion

The Government of Japan stands ready to provide the countries of Asia 10 trillion yen (100 billion U.S. dollars) if they are in a drastic shortage of funds. This is the Japanese media reported.

If you have serious problems with liquidity in the region, Tokyo intends to quickly establish ienovy Fund of up to 6 trillion yen (more than 60 billion dollars). Funds for this purpose will be drawn from the Japanese foreign exchange reserve, which uses about 100 trillion yen (more than 1 trillion dollars).

It is assumed that if any country in Asia, there is a shortage of liquidity, Japan enter into the agreement on currency exchange. The required amount will be transferred to the yen, and Tokyo, will receive a response in the local currency.

"With the new fund expects Japan not only to support the Asian partners, but also to expand the use of the yen," - writes the newspaper Nikkey.

Its one part of the Japanese plan to support the Asian markets is considered the establishment of a system of insurance of bonds denominated in yen, which produce and deploy in the Japanese market, foreign governments ( "Samurai-bonds). Tokyo intends to allow for these purposes up to 500 billion yen (over $ 5 billion).

The official statement of Japan's new measures to ensure liquidity in the Asian region, Tokyo newspaper reported, will be announced at the opening today in Indonesia, the meeting of representatives of financial institutions and central banks of member countries of ASEAN, as well as China, South Korea and Japan.

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