Asian ministers agree to promote bond markets<\/p>\n
Grant Peck, Associated Press, Chiang Mai<\/p>\n
Foreign ministers from 18 Asian countries on Sunday agreed to
\npromote bond markets in the region to avoid another financial
\ncrisis of the kind that devastated regional economies six years
\nago.<\/p>\n
At the end of a two-day Asia Cooperation Dialogue meeting, the
\nministers issued a declaration affirming their commitment to
\npromote \"efficient and sustainable Asian bond markets for the
\nbetterment of Asia and its financial system.\"<\/p>\n
Thai Prime Minister Thaksin Shinawatra, who released the
\ndeclaration, called for a self-reliant and interdependent Asia
\nwhose prosperity will benefit not just the region but the world
\nat large.<\/p>\n
\"Our aim is to create Asia that is more prosperous, more
\ncompetitive and a better place for our children,\" he said.<\/p>\n
Proponents hope that regional bond markets will provide stable
\nsupplies of long-term capital for Asia's private sector.<\/p>\n
At present, Asian savings often go to global markets before
\nbeing channeled back as high-risk premium loans. Sudden changes
\nin capital flows were a major factor behind the Asian financial
\ncrisis of 1997-98.<\/p>\n
The declaration also hailed the establishment on June 2 of a
\nUS$1 billion Asian Bond Fund in which many ACD members, including
\nJapan, China and Thailand, will pool their reserves to buy Asian
\ngovernment bonds.<\/p>\n
India is eager to set up a second Asian Bond Fund, and is
\nwilling to contribute initial seed money of $1 billion on its
\nown, Thai Foreign Minister Surakiart Sathirathai told reporters.<\/p>\n
Thaksin said that although Asia's $1.4 trillion in foreign
\nreserves represents half of the world's total international
\nreserves, Asia has never used that money to create more wealth
\nwithin the region.<\/p>\n
\"These reserves - our own reserves - were used to create and
\nadd more wealth to the western hemisphere,\" he said.<\/p>\n
Asia \"must try to manage its own assets, resources and
\nstrengths in such a way that creation of our financial
\ninstruments will serve us best,\" he said.<\/p>\n
The ACD meeting, launched by Thaksin last year, also discussed
\nways to promote cooperation in other areas such as energy
\nsecurity, poverty reduction, information technology, tourism and
\nhuman resources development.<\/p>\n
The forum brought together foreign ministers from 18 nations -
\nthe 10 members of the Association of Southeast Asian Nations
\n(ASEAN) plus Japan, South Korea, China, India, Pakistan,
\nBangladesh, Bahrain and Qatar.<\/p>\n
ASEAN's members are Brunei, Cambodia, Indonesia, Laos,
\nMalaysia, Myanmar, the Philippines, Singapore, Thailand and
\nVietnam.<\/p>\n
Kazakhstan, Kuwait, Oman and Sri Lanka will join ACD when it
\nholds its third meeting in China next year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-ministers-agree-to-promote-bond-markets-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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