MANILA, Philippines — The Philippines and other ASEAN+3 economies can now access a new emergency financing facility following the entry into force of an amended regional agreement aimed at strengthening financial resilience against sudden economic shocks.
The amended Chiang Mai Initiative Multilateralization (CMIM) agreement took effect yesterday, introducing the Rapid Financing Facility (RFF) to provide emergency foreign currency support to economies facing urgent balance-of-payments difficulties arising from natural disasters, pandemics and other external shocks.
The balance of payments tracks a country’s economic transactions with the rest of the world, with severe shortfalls potentially affecting its ability to meet international payment obligations.
The CMIM maintains its $240-billion financing capacity, allowing ASEAN members, China, Japan and South Korea to access foreign currency liquidity during financial stress.
Under the new facility, members can obtain emergency financing in US dollars, Chinese renminbi and Japanese yen through currency swap transactions.
Access is capped at 20 percent of a member’s maximum arrangement amount under the portion not requiring an International Monetary Fund program and 50 percent under the IMF-linked portion.
The facility also does not impose advance qualification requirements or additional conditions after disbursement, allowing faster assistance during emergencies.
According to the Bangko Sentral ng Pilipinas, the Philippines has committed $9.104 billion to the CMIM and may borrow up to $22.76 billion under the overall arrangement.
These commitments do not involve upfront transfers, as participating central banks retain custody of their reserves until a financing request is approved.
The ASEAN+3 finance ministers and central bank governors approved the rapid financing facility in May 2025, although the amended agreement took effect only on Nov. 11.
The amendment also allows the renewal of drawings under the CMIM Precautionary Line, giving member economies greater flexibility in accessing financial support to prevent potential crises.