Dhaka, Nov 25 (bdnews24.com)—Outstanding local currency bonds in emerging East Asia stood at $4.2 trillion at the end of September 2009, an Asian Development Bank news release from Manila, the ADB headquarters, said.

The November issue of the ADB's Asia Bond Monitor attributed the increase to local currency bonds' growing role as a source of funds for companies and governments in recent weeks to support economic stimulus packages and for market reforms.

"The increase in emerging East Asia's outstanding bonds to above $4 trillion is testament to the hard work of the region's governments and regulatory authorities in opening up their markets with an eye to building a regional debt market," said Jong-Wha Lee, ADB's Chief Economist and Head of the Office of Regional Economic Integration, which prepared the report.

In the survey of 106 participants conducted in June and July, respondents agreed that increasing the diversity of the investor base is key to improving liquidity.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration.

Established in 1966, ADB is owned by 67 member countries – 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.

bdnews24.com/wz/ec/1230h.