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East Asian nations expand, strengthen emergency program

China, Japan, South Korea and 10 Southeast Asian countries agreed on Thursday to enlarge and strengthen their emergency liquidity program, while citing euro zone uncertainties and high oil prices as key economic risks.

The 13 countries endorsed the proposed doubling in size of the Chiang Mai Initiative Multilateralisation (CMIM) program to USD240 billion and agreed to slightly reduce its compulsory link to the International Monetary Fund bailout conditions.

"We strongly believe that our agreement made today on strengthening the CMIM … will serve as another important step forward to strengthen the regional financial safety net and to pursue sustainable growth in the region," their finance ministry and central bank chiefs said in a joint statement after a meeting in Manila. 

(Source: Jakarta Globe )