MANILA, Oct. 15 (Xinhua) -- The World Bank will contribute 10 billion U.S. dollars to a "standby facility" that will aid Association of Southeast Asian Nations (ASEAN) members amid the global financial crisis, the Philippine President said on Wednesday.
President Gloria Macapagal-Arroyo said the World Bank (WB) made the pledge after the international financial institution, along with the International Monetary Fund and the Asian Development Bank (ADB), agreed to establish a standby facility for ASEAN countries with severe liquidity problems, Philippine TV GMA News reported.
"They reached an understanding to establish a standby facility to assist ASEAN countries who have severe liquidity problems," said the President, adding that the Philippines is not one of them yet.
The facility can also be used to purchase what "toxic assets" and recapitalized troubled financial institutions and private companies, she added.
"The WB and the IMF will draft the implementing mechanism as soon as possible, in consultation with ASEAN finance ministers and central bank governors," President Arroyo said.
President Arroyo said this as she assured local government executives that the Philippines has been able to withstand so far the impact of the global economic slowdown due to long-standing fiscal policies.
