Ninth UNCTAD Debt Management Conference
Geneva, 11 - 13 November 2013
Optimal Sources of Financing by
Mr. Thierry de Longuemar
Vice President
(Finance and Risk Management)
Asian Development Bank
The views expressed are those of the author and do not necessarily reflect the views of UNCTAD

Thierry de Longuemar
Vice President (Finance & Risk Management)
Asian Development Bank
9 th UNCTAD Debt Management Conference
12 November 2013

Outline

I. Introduction
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Introduction
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II. Challenges

The task is complex because…
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The task is complex because…
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The task is complex because…
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Need for Capacity Building
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II. Challenges
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15
10
5
0
35
30
25
20
Foreign holdings of local currency government bonds, % of total
31.85
30.34
17.9
9.47
Indonesia
Source: AsianBondsOnline(ABO), ADB
Korea, Rep. of Malaysia Thailand

Size and composition of financial systems (% of GDP)
China, People’s Rep. of
Hong Kong, China
India
Indonesia
Korea, Rep. of
Malaysia
Philippines
Singapore
1997
145
615
44
84
132
186
258
762
Financial sector assets
Deposit-taking financial institutions 1
2010
184
708
90
36
151
214
147
582
Nonbank financial institutions 2
1997
1
76
2
5
23
28
55
81
2010
16
459
29
8
73
109
36
79
Total bonds outstanding
1997
9
23
18
2
29
54
20
24
2010
52
29
46
Taipei,China
Thailand
Average 3
233
156
294
155
24
6
97
37
7
22
262 256 30 94 21
1 Data for 1997 refer to 1999 for Rep. of Korea and 2000 for Taipei. Data for 2010 refer to 2009 for PRC.
2 Data for 1997 refer to 1999 for India and 2000 for Taipei. Data for 2010 refer to 2009 for PRC and Hong Kong and 2008 for India.
3 Simple average of ratios.
Sources: ADB calculations based on data from national sources, AsianBondsOnline, Bloomberg, IMF (World Economic Outlook
Database).
71
57
57
13
110
101
34
58

Structure of finance sector (% of GDP, 2009)
Selected Asian Eurozone United States
350
300
250
200
150
100
50
0
Deposit-taking
Financial Institutions
Non-bank Financial
Institutions
Total Bonds
Outstanding
The selected Asian region includes Bangladesh, the People‘s Republic of China (PRC), India, Indonesia, Kazakhstan, Lao PDR, Malaysia,
Nepal, Pakistan, Papua New Guinea, Pakistan, Philippines, Solomon Islands, Sri Lanka, Thailand, and Tonga.
Source: Financial Sector Operational Plan, ADB, 2010

Developing Asia’s Debt Securities Portfolio Outflows by region (%, 2011)
35%
30%
25%
20%
15%
10%
5%
0%
8.4%
32.0%
30.0% 29.6%
ASEAN+3 Europe United States Rest of the World
Source: The International Monetary Fund Coordinated Portfolio Investment Survey;
Note: This refers to the debt securities investments of ASEAN+3 within and outside of the ASEAN+3 region

III. ADB Support

Capacity Building
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Capacity Building
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1. Public Debt Management : For debt management offices
• Last one held in Jakarta, Indonesia in March 2013, cohosted with Directorate General of Debt Management,
Indonesia
2. Investment Management of Foreign Exchange Reserves :
For central banks
• Last one held in Seoul, Korea in September 2013, cohosted with Bank of Korea
3. Asset Liability and Risk Management: For financial institutions (public and private sector)
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• also conducts workshops for individual countries on its financial offerings

Capacity Building- Lessons Learned
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II. ADB Support

ADB Assistance to Member Countries
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Local Currency Bond Market
Development Support
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Local Currency Operations
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Conclusion
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www.adb.org