ASEAN+3 Finance Ministers, bank governors seek to boost economic recovery

Co-chaired by Japan and Vietnam, Financial Ministers and Central Bank Governors from 10 ASEAN member states plus China, Japan and the Republic of Korea and leaders of international financial institutions examined global and regional macroeconomic situation as well as measures to respond to the COVID-19 pandemic.

They made an in-depth analysis on risks and challenges posed by the COVID-19 pandemic to global and regional economies. According to the International Monetary Fund, the global economy this year is projected to decline by 4.9%, while the Asian economy is anticipated to decrease by 1.6%.

Delegates shared the view that the disruption of the global supply chain due to the impact of the COVID-19 pandemic requires financial and monetary policymakers to introduce timely and effective macroeconomic policies and measures to enhance the resilience of the economies against shocks, thereby helping to maintain the stability and integrity of the financial system.

They agreed that regional cooperation, including financial cooperation, is an important factor in strengthening economies’ capacity to coordinate and respond to pandemic impact and aid economic recovery in a sustainable manner.

At the meeting, the Financial Ministers and Bank Governors of ASEAN + 3 to approved revisions of the Chieng Mai Initiative Multilateralization Agreement (CMIM), in which they agreed to increase the IMF De-Linked Portion from 30% to 40%. They maintained that the results of cooperation under the CMIM Initiative play important role in tightening cooperation and strengthening mutual support in the context of the regional economy facing many difficulties and uncertainties.

The delegates acknowledged the efforts the ASEAN + 3 Macroeconomic Research Office (AMRO) has made in carrying out macroeconomic monitoring activities, providing assessment and analysis of the COVID-19 pandemic and making policy recommendations to ensure stable macroeconomic and financial situation in the region.

They also acknowledged the progress and results achieved by the Asian Bond Markets Initiatives (ABMI) working groups in their research with a view to improving the investment environment, developing new investment tools, perfecting the legal framework, developing infrastructure for the bond market as well as implementing technical assistance programs to develop the bond markets of member economies.

They also welcomed the implementation of new initiatives under the Strategic Directions of the ASEAN+3 Finance Process in order to enhance regional economic and financial stability.

The delegates attending the virtual meeting adopted a joint statement and agreed to hold the next meeting in Tbilisi, Georgia in 2021.