VN to participate ASEAN Plus Three CGIF
VGP – PM Nguyễn Tấn Dũng just assigned the Ministry of Finance (MoF) to sign a document under which Việt Nam can officially join the ASEAN Plus Three Credit Guarantee and Investment Facility (CGIF).
The MoF will take prime responsibility, in collaboration with the State Bank of Việt Nam (SBV) and other relevant bodies, for directing the implementation of the above deal.
The Government chief also agreed to contribute US $1.1 million to CGIF from the State budget spending plan for 2010 as committed.
Ten ASEAN member countries and its three East Asian partners, namely Japan, the Republic of Korea and China, will provide a combined fund of US $570 million to create the US $700-million facility.
The pilot CGIF, scheduled to start operations in 2011, will provide guarantees on local currency denominated bonds issued by companies in the region.
This will help reduce the currency and maturity mismatches which caused the 1997-1998 Asian financial crisis. At the same time, it makes the regional financial system more resilient to volatile global capital flows and external shocks.
By Hải Minh
