On the financial front, East Asia’s integration with the international financial system has also advanced steadily in recent years. The integration brings benefits to the economies in the region. With more funding options available, borrowers in the region can raise funds on more favorable terms.
To prevent contagion of the sovereign debt crisis to other larger member countries, the euro area decided to create a permanent crisis mechanism called the European Stability Mechanism (ESM). The ESM, which will become operational in July 2012, will take over all the features of the EFSF and have a maximum lending capacity of € billion, based on the paid-up capital of € billion.