ASEAN+3 launches crisis lending facility

Finance ministers from Japan, China, South Korea, and the 10 ASEAN countries have agreed to launch a new emergency lending facility under the Chiang Mai Initiative Multilateralization (CMIM) to better respond to financial shocks from pandemics and natural disasters. The announcement came during the ASEAN+3 meeting in Milan. The rapid financing tool, part of the USD240bn CMIM currency swap pool, will provide swift, unconditional funding during crises. Japan and China each contribute USD76.8bn, while South Korea and ASEAN members provide USD38.4bn and USD48bn, respectively. The CMIM, formed after the 1997-98 Asian financial crisis, currently has two unused mechanisms due to member preference for bilateral swaps. The new facility aims to enhance regional financial resilience through faster disbursement.