Asian countries to establish regional credit guarantee body: official

SEOUL, April 5 (Yonhap) -- Asian countries are expected to announce the details of a proposed credit guarantee body next month, aimed at bolstering regional debt markets, a high-ranking Seoul official said Sunday.

The envisioned organization called a "credit guarantee and investment mechanism"
(CGIM) is intended to provide a credit guarantee for regional banks and companies
to gain necessary funding through bond issuance.
"ASEAN members plus South Korea, China and Japan will hold a finance minster
meeting in Bali, Indonesia earlier next month and announce plans to establish the
CGIM,??? said Deputy Finance Minster Shin Je-yoon told reporters during a
briefing on the results of the G-20 summit talks in London.
"The size of the body and other issues such as where its headquarters should be
located will be announced," Shin added.
The establishment of the regional credit guarantee body is seen as an attempt by
Asian countries to avoid a repeat of the 1997-98 financial meltdown by helping
their firms and banks gain easier access to capital. In February, ASEAN plus
three countries agreed to expand their joint fund to provide foreign currency in
case of a crisis.
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