New Miyazawa Initiative Short-term Financing Facility

The Japanese Ministry of Finance and the Ministry of Finance of Malaysia have reached an agreement regarding the basic features of the short-term financing facility under the framework of the "New Miyazawa Initiative".

The facility is aimed at supporting credit-extending schemes which intend to promote economic activities in Malaysia, such as a trade financing facility, small and medium size enterprise credit line, etc. This will serve as a standby facility for the Malaysian Government should the need arise.

In this short-term facility, the Japanese Ministry of Finance is committed to providing up to US$ 2.5 billion liquidity to Bank Negara Malaysia, if and when necessary, through swap transactions between the US dollar and the Ringgit.

In addition to this short-term financing facility, the two Ministries continue to discuss further assistance to Malaysia under the framework of the"New Miyazawa Initiative".