E Asian crisis unlikely to recur: ADB chief

Haruhiko Kuroda, president of Asian Development Bank, on Saturday said the financial meltdown similar to the east Asian crisis in 1997 is "extremely unlikely" to recur at this juncture as many countries in the region have reduced short-term external debts and increased their forex reserves.

After the east Asian crisis, many countries in the region have restored their macro economic stability, improved their economic management and supervision, and strengthened the banking system, Kuroda said on the concluding day of the annual meeting of ADB's board of governors here.

"However, it is prudent to have the necessary safety nets, if in the future, some external shocks or internal events create financial problems,"  Kuroda said. 

Asean+3 countries (China, Japan and Korea) have established a network of arrangements, totalling $75 billion, to prevent shocks. A proposal in the IMF to increase quota shares for emerging Asian economies to reflect market realities.

In case of need, IMF is likely to provide assistance to countries in Asia. Regional cooperation as well as improved global financial architecture would prevent any major crisis in the region, Kuroda said.