Credit guarantee unit to serve Asean
The Credit Guarantee and Investment Facility (CGIF), an agency set up by Asean+3 and the Asian Development Bank to help develop local-currency bond and cross-border bond markets in the region, has started to operate, says chief executive Kiyoshi Nishimura. He said the CGIF will fill in the gap created by “structural factors” that had impeded some creditworthy companies which have no track record and wanted to access the market. It guarantees corporate and state-enterprise bonds of creditworthy companies which face difficulties entering the market and helps the companies issue bonds with long maturities in Asean, China, South Korea and Japan. “Asean economies are still bank-dominated. We need to encourage creditworthy companies to diversify funding sources to cope with shocks in the financial sector,” he said. …
http://www.bangkokpost.com/business/economics/296033/credit-guarantee-unit-to-serve-asean
