ASEAN+3 to set up Credit Guarantee Investment Facility by May
VGP – With US $1.1 million contribution, Vietnamese enterprises can receive a maximum credit guarantee of US $140 million from the fund of ASEAN +3.
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Vietnamese Finance Minister Vũ Văn Ninh (3rd from right) and his Chinese counterpart Xie Xuren (2nd from right) jointly chair the 13th ASEAN 3 Finance Ministers’ Meeting, Tashkent, Uzbekistan, May 2, 2010 |
Vietnamese Finance Minister Vũ Văn Ninh and his Chinese counterpart Xie Xuren on May 2 in Tashkent, Uzbekistan jointly presided over the 13th ASEAN 3 Finance Ministers’ Meeting.
At the meeting, the Ministers announced the establishment of a fund called Credit Guarantee Investment Facility (CGIF) and supposed to make a big step in developing the Asian bond market.
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Contributions of ASEAN 3 to CGIF Japan and China: US $200 million The Republic of Korea: US $100 million ADB: US $130 million Malaysia, Thailand, Indonesia, the Philippines and Singapore: US $12.6 million; Brunei: US $5.6 million Việt Nam: US $1.1 million Laos, Cambodia and Myanmar: US $100,000 |
With an initial capital of US $700 million, CGIF functions as a trust fund managed by the Asian Development Bank (ADB). The objective of CGIF is to support the issuance of local currency-denominated corporate bonds in Asia, so as to contribute to economic development and prosperity here.
Delegates were unanimous in the establishment of the ASEAN 3 Bond Market Forum (ABMF) to standardize markets and harmonize legal frameworks in regional bond markets.
The ASEAN 3 Macro-economic Research Office (AMRO) will be founded and put into operation in May to conduct comprehensive surveillance of regional economies for early respond to risks and support decision-making process of the Chiang Mai Initiative Multilateralization (CMIM).
According to the Finance Ministers, the economy of ASEAN 3 as a whole will grow by 4.6% in 2010 from 0.9% last year.
By Kim Anh
