Köhler meets with Asian leaders, urges continued reforms to promote stability and growth

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IMF Managing Director Horst Köhler has just completed his first round of visits to Asia. From June 1 through June 6, Köhler met with senior officials and country leaders in Thailand, China, Korea, Indonesia, and India. Following his Asian tour, the Managing Director met with private sector financial representatives in New York on June 8.

On June 1, Köhler met with senior Thai officials in Bangkok, including Prime Minister Chuan Leekpai and Finance Minister Tarrin Nimmanahaeminda, to discuss economic developments in Thailand and the region. Köhler observed that regional initiatives can be very helpful in supporting sustained economic growth and stable financial relations among participating countries. Commenting on regional monetary initiatives in Asia, he said that the recent Chiang Mai Initiative of the ASEAN countries was “another example of enhancing regional cooperation” and noted that “the ASEAN+3 have clearly stated that they view the swap and repurchase arrangements as complementary to the work of the IMF.”

In Beijing, Köhler had a series of meetings with senior Chinese leaders, including Premier Zhu Rongji; Dai Xianglong, Governor of the People’s Bank of China; and Finance Minister Xiang Huaicheng. These meetings, according to an IMF news brief, gave Köhler the opportunity to hear Chinese views on the international financial system, the reform of the IMF, and China’s role in the IMF.

Speaking at a press briefing on June 3 following talks with high-level Korean officials, including President Kim Dae Jung, MinisterPage 196 of Finance and Economy Lee Hun Jai, and Bank of Korea Governor Chon Chol Hwan, Köhler commended the Korean government for implementing a structural reform program that has made the economy more open, competitive, and market driven. He cautioned, however, that there was no room for complacency with reform. Köhler also said that Korea’s recovery from the exchange rate crisis of late 1997 was remarkable and has left the economy less vulnerable to economic shocks.

Köhler met, on June 4, with Indonesia’s...