BANGKOK, July 17 — The ASEAN Plus Three’s mutual financial assistance to prevent an economic crisis under the Chiang Mai Initiative Multilateralization (CMIM) Agreement has taken effect.
The Bank of Thailand (BoT) stated that the improved agreement which central bank governors and financial ministers of the ASEAN Plus Three (covering ASEAN member states, China, Japan and South Korea) and Hong Kong had signed earlier took effect on July 17, 2014.
The agreement enables the member countries to help tackle the liquidity problem of one another.
Under the improved agreement, the size of the stability facility contributed by members in the grouping rises from US$120 billion to US$240 billion.
IMF-delinked assistance for member states in trouble increases from 20 per cent to 30 per cent of the fund.
Besides, assistance can be made to prevent an economic crisis instead of solving an economic crisis in a member country.
Thailand’s contribution to the pool rises from US$4,552 million to US$9,104 million.
The sum comes from its foreign-exchange reserves. Thailand can seek assistance equivalent to 2.5 times of its contribution or US$22,760 million, up from US$11,380 million.
The amended agreement showed stronger financial cooperation in the region, the BoT stated.
