Japan helps ASEAN apply credit guarantee mechanism

VGP – The Japanese Ministry of Economy, Trade and Industry revealed that Japan will support nations in ASEAN to establish and apply a credit guarantee mechanism in an effort to help businesses investing in Southeast Asia mobilize capital after the Trans-Pacific Partnership Agreement comes into effect.

January 06, 2016 4:44 PM GMT+7

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According to Kyodo news, in the first period, Japan will assign professionals to ASEAN to advocate the establishment of financial database for small and medium-sized enterprises (SMEs).

In the future, Japan will help improve the environment and allow ASEAN to apply the credit guarantee mechanism like the one in Japan.

In a meeting in November 2015, the ASEAN member nations agreed to apply the credit guarantee mechanism for each phase. In 2016, nations in ASEAN and Japan will cooperate in supervising the financial assistance for SMEs in ASEAN.

Financial database of SMEs will be completed for credit guarantee associations and financial agencies to evaluate credit and money risks to enhance the application of the credit guarantee mechanism.

By Thuy Dung