Wednesday, April 14, 2010
ADB and ASEAN +3 Forms Insurance Agency Loan of U.S. $ 700 Million
.Asian Development Bank (ADB) and ASEAN countries plus China, Japan and South Korea, known as ASEAN +3 agreed to establish a credit guarantee facility worth U.S. $ 700 Million.
Establishment of credit guarantee facility was intended to support financial stability and encourage the improvement of long-term investment in the ASEAN region.
Of the total credit guarantee facility, the ADB will support the U.S. $ 130 million, while U.S. $ 570 million supported the ASEAN +3 countries. Of the total of which supported the ASEAN +3, the details are China contributes U.S. $ 200 million, Japan U.S. $ 200 million, U.S. $ 100 Million South Korea and ASEAN U.S. $ 70 million.
ADB's Board of Directors has approved ADB's contribution to Credit and Investment Guarantee Facility (CGIF method). The plan, CGIF trial will commence operations in 2011.
CGIF will provide guarantees for securities denominated in local currency issued by companies in ASEAN. The existence of this guarantee will make firms more easily publish local securities with a longer term.
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