Asian bond market plan proceeds

Asian bond market plan proceeds

Agence France-Presse, Manila

Finance ministers of Southeast Asia as well as China, Japan
and South Korea will map out procedures for an Asian bond market
during talks here this week, Philippine Finance Secretary Jose
Isidro Camacho said Monday.

"The difficulty is that it is so wide in scope, we have to
hold talks about the listing procedures, settlements and tax
regimes," he told reporters ahead of the meeting Wednesday of
finance ministers from the Association of Southeast Asian Nations
(ASEAN).

Camacho will chair the meeting that will follow talks among
the 10 ASEAN ministers and their counterparts from China, Japan
and South Korea to "operationalize" the regional bond market.

ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, the Philippines, Singapore, Thailand and Vietnam.

It was decided at earlier meetings that the 13 countries
promote cross-border issuance of bonds and investment as part of
an 'Asian Bond Market Initiative.'

"There has to be certain agreements and common guidelines on
credit investments," Camacho said, adding that the project was
viable as the region had among the world's biggest reserves.

Six working groups have met under the regional bond initiative
to, among other things, set up new securitized debt instruments
and credit guarantee mechanisms, as well as to look into the
structures of local and regional rating agencies.

Thai premier Thaksin Shinawatra announced last month the
launch of the Asian Bond Fund to be backed by 11 countries in the
Asia Pacific.

The bond is the brainchild of Thaksin.

Central banks in Japan, the Philippines and Singapore have
announced separately that they will each provide US$100 million
to the fund, while Australia's reserve bank will contribute $50
million.