Asian Economic Crisis and Japan's Contribution
Ⅰ. Assistance measures for Asia (Approx. $44 billion, as of Nov. 1998)
Since the Asian Currency Crisis broke out in July 1997, Japan has announced assistance measures for Asia totaling approximately $44 billion up to the end of November 1998, and the measures are being implemented steadily. The measures include bilateral cooperation in the context of the IMF-led assistance package, assistance for private investment activities, facilitation of trade financing, assistance to the socially vulnerable, assistance for economic structural reforms, and assistance for human resources development.
Ⅱ. "New Initiative to Overcome the Asian Currency Crisis" (New Miyazawa Initiative)
In October 1998, Japan announced "New Miyazawa Initiative" which included a package of support measures totalling $30 billion, of which $15 billion will be made available for the medium- to long-term financial needs for economic recovery in Asian countries, and another $15 billion will be set aside for their possible short-term capital needs during the process of implementing economic reform. This initiative has been implemented steadly.
"Asian Currency Crisis Support Facility"
Japan proposed the facility to be established in the Asian Development Bank under the New Miyazawa Initiative (Approx. $3 billion). This facility supports crisis-affected countries of Asia in raising funds from international financial markets through guarantees, interest subsidies and so on. This facility can be utilized for "Asian Growth and Recovery Initiative" announced jointly by Japan and the United States at the APEC Economic Leaders Meeting in November 1998.
Ⅲ. "Special Yen Loan Facility as Assistance for Economic Structural Reforms of the Asian Countries"
At the ASEAN + 3 (Japan, China and the Republic of Korea) Summit Meeting in December 1998, Japan announced a scheme of special yen loan facility of a maximum amounting to a total of up to 600 billion yen (approx. $5 billion) over 3 years, for the purpose of assistance for infrastructure developments to contribute to economic-stimulating, employ-promoting and economic structural reforms of Asian countries. For the time being, an interest rate of 1% and a repayment period of 40 years will be advantageously applied to the Special Yen Loan Facility.
Ⅳ. Former-Prime Minister Obuchi's Major Proposals at the ASEAN + 3 and ASEAN + 1 (Japan) Summit Meetings in Manila (Obuchi Initiative)
At the ASEAN + 3 and ASEAN + 1 Summit Meeting in November 1999, Japan announced the proposals as below:
a) "Plan for Enhancing Human Resources Development and Human Resources Exchanges in East Asia" (Obuchi Plan)
b) Continued assistance for building social safety nets so that people can lead a human life
c) Cooperation for the Development of ASEAN
d) Cooperation to Reinforce the Basis for Revitarization of Economy and Cooperation to meet the Challenges of the Age of Information
e) Measures to Combat Piracy
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