NEW DELHI, Feb 11: Indian government will fund and bring together economic and financial experts of Asia to complete a UNESCAP study on exploring ways to utilize savings in the region for financing infrastructure projects, which require staggering amount of $500 billion in a year.

Net savings in Asia, currently standing at $400 billion, are being used to finance US deficits and in European countries, Kim Hak-Su, Executive Secretary of United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) told the newsmen here.

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 be then 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 will now further delve into various aspects of these instruments and mobilize experts in the region to complete the study in 4-5 months, Hak-Su added.

During the visit, Hak-Su met Minister of State for Finance Jairam Ramesh and both agreed that the two Delhi-based think-tank — Indian Council for Research on International Economic Relations (ICREAR) 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.—APP