Bangalore: Thailand Deputy Prime Minister Korn Dabbasarni on August 8 said that India has confirmed that it would contribute $ 1 billion to the "Asia Bond Fund", aimed at developing regional market for bonds and adding financial stability in the region.

"It was confirmed by India 48 hours ago. Prime Minister Atal Behari Vajpayee has confirmed that India will participate with $ 1 billion in the Asia Bond Fund," Dabbasarni told reporters on the sidelines of "Round Table on Information Technology" organised by the Confederation of Indian Industry (CII).

An initiative by Thailand, the ABF was set up in June by 11 Asia Pacific countries' Central banks pooling in $ 1 billion of foreign exchange reserves.

It is headed by the Bank for International Settlements to invest in Dollar debts issued by their governments.

The participating countries include The Philippines, Malaysia, Indonesia, Singapore, Hong Kong, South Korea and New Zealand, officials said, adding that India's commitment gains significance ahead of the Association of South East Asian Nations (ASEAN) meet with China and Japan at Bali later this month.

PTI