since its establishment in 2004 under the auspices of the ASEAN Finance Ministers. ASEAN
Finance Ministers have endorsed the Implementation Plan to promote development of an
integrated ASEAN capital market, while taking steps to strengthen the region’s resilience to
exogenous shocks. More specifically, the establishment of the Credit Guarantee Investment
Facility (CGIF), developed under the ASEAN+3 Asian Bonds Market Initiative, has been
proposed to help develop deeper and more liquid local currency and regional bond markets.
The CGIF is to be set up as a US$ 700 million trust fund, including capital contributions of
US$ 130 million from the ADB. The pilot CGIF, due to start in 2011, will provide guarantees
on local currency denominated bonds issued by companies in the region. Such guarantees
will make it easier for firms to issue local bonds with longer maturities. This will help reduce
the currency and maturity mismatches and make the regional financial system more resilient
to volatile global capital flows and external shocks.