NEW DELHI: The Union Government will fund and bring together economic and financial experts of Asia to complete a UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific) study on exploring ways to utilise savings in the region for financing infrastructure projects, which require a staggering $500 billion in a year. Net savings in Asia, now at $400 billion, are being used to finance U.S. deficits and in European countries, Kim Hak-Su, Executive Secretary of UNESCAP, told reporters here on Friday.

UNESCAP has completed the study on its part and came out with suggestions on guarantees on various instruments like bonds to draw these savings towards Asia which could then be used for infrastructure development.

India, for example, could offer 7-8 per cent interest rates on bonds with guarantee, which would attract Japanese investors who do not get much interest in their country.

India would now further delve into various aspects of these instruments and mobilise experts in the region to complete the study in 4-5 months, he said.

On a visit to India, Mr. Hak-Su on Friday met Minister of State for Finance Jairam Ramesh and both agreed that the two Delhi-based think tanks — the Indian Council for Research on International Economic Relations (ICRIER) and the Research and Information System for Developing Countries (RIS) — among other experts in Asia, will carry out further study on alternative models for infrastructure financing in the region.

Mr. Hak-Su also met Commerce Minister Kamal Nath and Minister of State for Finance P. K. Bansal. — PTI

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