Hanoi (VNA) – The Association ofSoutheast Asian Nations (ASEAN) plus Japan, China, and the Republic of Korea(RoK) agreed on December 7 to launch an emergency financing programme to dealwith future pandemics and natural disasters, in their latest attempt to ensurefinancial stability in the region.

The envisaged launch of the Rapid Financing Facilitycomes as the ASEAN+3 group is seeking to boost the safety net under the ChiangMai Initiative, created in the aftermath of the 1997 Asian financial crisis, toprovide liquidity of up to 240 billion USD in times of emergency.

The agreement was reached at a meeting of seniorfinance officials from the group held in Kanazawa, Ishikawa prefecture, incentral Japan.

After details are worked out, finance ministers andcentral bank governors from the group are expected to formally endorse it inMay 2024.

Under the new facility, member nations can swiftlysecure funds of up to half of what is allowed under the Chiang Mai Initiative without conditionality when an emergency funding need arises due to exogenousshocks such as natural disasters and pandemics, said Masato Kanda, Japanese vicefinance minister for international affairs.

The finance ministers and central bank governors hadagreed to explore the launch of a new financing programme, based on the viewthat speed is important in emergency funding./.