ADB President: bond market important solution to Asia's problems

Special
Report: Global Financial Crisis

BALI, Indonesia, May 3 (Xinhua)
-- Haruhiko Kuroda, President of Asian Development Bank (ADB), on Sunday called
for the development of Asia's bond market to mitigate the impact of the economic
crisis.

Asian Development Bank (ADB) President
Haruhiko Kuroda (R) speaks at a governor's seminar during the ADB annual
meeting in Bali, Indonesia, May 3, 2009. Haruhiko Kuroda calls for the
development of Asia's bond market to mitigate the impact of the economic
crisis. (Xinhua/Yue Yuewei)
Photo Gallery

"Positive progress in bond market could be a very
important solution to Asia's problems faced by so many countries," Kuroda said
at the ADB annual meeting.

"By developing bond market,
Asia's large savings could be integrated into more productive investment, including
infrastructure investment in Asia, may help reduce imbalance, one of the problems
of the crisis," he said.

Indonesia Finance Minister Sri Mulyani Indrawati (L4) speaks at
a governor's seminar during the ADB annual meeting in Bali, Indonesia, May
3, 2009. President of Asian Development Bank (ADB) Haruhiko Kuroda calls for
the development of Asia's bond market to mitigate the impact of the
economic crisis.(Xinhua/Yue Yuewei)
Photo Gallery

In a previous interview with Xinhua, the President
said at the regional level, ADB is working with ASEAN+3 to accelerate the
establishment of a credit guarantee facility in local currency bond markets to
make it easier for private companies to meet their local currency funding needs.

"This facility could provide credit guarantees for
bonds issued by domestic commercial banks to revitalize capital inflows and
allow banks to continue lending in the crisis," he said.