(KPL)On May 15, Ambassador KOBAYASHI hosted a reception commemorating the 20th anniversary of Japan-ASEAN financial technology assistance in Vientiane.

Japan has proposed and is working on the Asian Bond Market Development Initiative in order to develop local currency-denominated, long-term bond markets by fostering efficient and highly liquid bond markets in the ASEAN region.

Currently, the bond market is steadily developing with Ministry of Finance, the Lao People's Democratic Republic Bank, and the Lao Securities Commission Office (LSCO). Presence at the event were Mr Bounleua Sinxayvoravong,  Governor of Lao Central Bank, Viengdaly Ekalath, LSCO Deputy Secretary General, Lao government officials and Lao companies.

Ambassador KOBAYASHI highlighted the Asian financial crisis of 1997-1998 was triggered by increased autonomy in foreign currency denomination and short-term borrowing, and in fact, the Lao kip was one of the most devalued currencies at the time.

In 2002, Japan launched the Asian Bond Market Development Initiative in order to develop local currency-denominated, long-term bond markets and alleviate such crises by fostering efficient and highly liquid bond markets in the ASEAN+3 region. initiative (ABMI), he said.

ABMI was agreed upon at the 6th ASEAN+3 Finance Ministers Meeting in 2003. Since then, the central bank governor has also participated in this framework, and we have worked tirelessly on a number of issues to date, he added.

In the same year, Japan and ASEAN agreed to establish the Japan-ASEAN Financial Technical Cooperation Fund, and the Japanese Ministry of Finance has provided technical assistance through financial contributions to ADB and the ASEAN Secretariat. This year marks the 20th anniversary of ABMI technical support for the industry.

In 2004, the first phase of Japan-ASEAN financial and technical cooperation for Laos under the ABMI began. Currently, the 10th phase is already being implemented with the cooperation of Lao counterparts, the Ministry of Finance, Bank of the Lao PDR, and the Lao Securities Commission Office.

Twenty years ago, Lao PDR had almost no bond market. Currently, the stock exchange has developed to the point where government bonds and corporate bonds are listed on the stock exchange. I believe that this is thanks to the support and efforts of everyone who is participating today. I hope that Laos will accomplish the important task of serving as the ASEAN chair this year and demonstrate further leadership in the region and the international community.

“We are confident that the Asian bond market will steadily grow in Southeast Asia, including Laos,” he went on.

Next year will mark the 70th anniversary of the establishment of diplomatic relations between Laos and Japan.

KPL