ADB Calls For Greater Caution In Debt Management

Jakarta, March 20 (Antara) - The Manila-based Asian Development Bank (ADB) said Asian countries need to be more efficient in their debt management to ward off financial crisis. The ADB said in a prepared statement delivered at a Forum of Debt Management for Asian Region held here from March 19 to 21, Asian countries also need to develop local bond market to contribute to economic stability. The Forum organized by the Finance Ministry in cooperation with ADB are attended by stakeholders in debt management, discussing important issues related to debt management. Indonesian Finance Minister Agus Martowardojo said the situation being faced by Asian countries at present proved that good debt management could serve to cushion the impact of financial crisis. "Good management of government bond market with right selection of access to international financing agencies could ensure fiscal support for domestic economy," Agus said. ADB`s Vice President in charge of Finance and Risk Management Thierry de Longuemar pledged commitment to support the initiatives of Asian countries in expanding local bond market as it is important to funnel the bond funds to productive investments. "ADB provides initiative support to expand local bond market and provide fund for important areas, such as infrastructure. This includes support for Asian Bond Market Initiative and ASEAN Infrastructure Fund," Thierry said. Currently local bond markets in Asia have grown fast in the past decade and are relatively strong enough to resist external turbulence after the 1997-1998 crisis, he said. By the end of 2012, nine East Asian countries had funds valued at US$6.5 trillion in local bonds and Indonesia had one of the largest of up to US$111 billion through bond issues. Debt management has also increased as the government could issue bonds with longer term to support easier and cheaper financing schemes, he said In general, economic development and condition in Asia gave greater optimism amid slowdown and uncertainties in Europe, the United States and Japan, he added. "The prospects in the ASEAN region are encouraging and this is very positive for the realization of the region`s integrated economy in 2015," he said.