ASEAN+3 seek ‘stronger bonds'
|The financial chiefs are likely to confirm the need to help businesses procure funds and increase transactions in local currencies. — Photo mof
HA NOI — The Finance Ministers of 10 ASEAN member countries and Japan, China and the Republic of Korea (ASEAN+3) met on Saturday in Kazakhstan, aiming to boost co-operation in Asian bond markets to help prevent a recurrence of the Asian currency crisis.
The event took place on the sidelines of the annual meeting of the Asian Development Bank (ADB).
The financial ministers and central bank governors are also expected to address concerns about an economic slowdown in emerging economies in the wake of the US Federal Reserve's tapering of its large-scale asset purchases.
The financial chiefs are likely to confirm the need to help businesses procure funds and increase transactions in local currencies. They will do this by expanding a credit guarantee capacity for corporate bonds through a fund known as the Credit Guarantee and Investment Facility.
They are expected to endorse a decision made last November to more than double the credit guarantee limit to us$1.75 billion.
As massive outflows of US dollar-based capital triggered the 1997 to 1998 Asian currency crisis, the development of resilient local currency bond markets has been a long-term challenge in the region.
The Association of Southeast Asian Nations consists of Brunei, Cambodia, Indonesia, Laos , Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.—VNS