ASEAN members to set up a $700 million credit guarantee fund

The ministers from 10 ASEAN members, China, Japan and South Korea finalized a plan to set up a $700 million credit guarantee fund in a step to stabilize Asian bond market.According to earlier statements released by Japan and South Korea, Japan and China will contribute $200 million each to the facility while South Korea will put in $100 million.The 13 countries had already agreed in principle to set up the $700 million fund, to which the Asian Development Bank will also contribute, to provide credit guarantees to corporate bonds being issued in local markets in local currencies.