Foreign ministers from 18 Asian countries on Sunday pledged to establish viable bond markets in the region to help avoid another financial crisis.

In the "Chiang Mai Declaration," members of the Asia Cooperation Dialogue (ACD) forum expressed their political will to foster Asian bond markets in a bid to stabilize the region's economy.

They also agreed to set up the Asian Bond Fund as a catalyst for private-sector investors both within and outside the region to invest in Asian bond markets.

Japan and Thailand reportedly plan to invest US$4-5 billion to inaugurate the fund.

The ACD foreign ministers began the two-day annual meeting in Chiang Mai, a northern Thai city on Saturday.