TF+3

The Asian Bond Markets Initiative (ABMI) was launched in December 2002 and promoted in August 2003 by the Association of Southeast Asian Nations (ASEAN) and the People’s Republic of China (PRC), Japan, and the Republic of Korea —collectively known as ASEAN+3— to develop local currency (LCY) bond markets as an alternative source of funding to foreign-currency denominated bank loans to minimize the currency and maturity mismatches that had made the region vulnerable to the sudden reversal of capital inflows. Policy makers in the ASEAN+3 region have also aimed to promote regional financial cooperation and integration under ABMI.

Under ABMI, ASEAN+3 established working groups and task forces to deepen various discussions including the identification of problems and impediments as well as solutions and possible implementations. In addition, the Asian Development Bank (ADB) as the secretariat of ABMI supported the regional efforts strongly. Currently, there are 5 TFs:

1. TF1: Promoting Issuance of Local Currency Denominated Bonds;
2. TF2: Facilitating Demand for Local Currency Denominated Bonds;
3. TF3: Improving the Regulatory Framework
4. TF4: Improving Related Infrastructure for the Bond Market
5. Technical Assistance Coordination Team (TACT)