ADB to double or triple capital due to global financial crisis

TOKYO, Jan. 14 Kyodo -
The Asian Development Bank has launched talks with Japan, the United States and
other major ADB contributors to double or triple its capital in response to the
global financial crisis, Japanese government sources said Wednesday.
The Manila-based bank plans to become better prepared to support member
countries fully even if funds flow out of these nations during the crisis, the
sources said.
The ADB is seeking to produce agreement on the first capital expansion in 15
years prior to its annual meeting scheduled for May in Indonesia, they said.
The bank, capitalized at some $56 billion at the end of 2007, plans to increase
its capital by two, two and a half or three times while leaving the
contributors' percentage stakes unchanged, the sources said.
Japan and the United States are the largest ADB capital contributors with a
15.6 percent stake. If the ADB's capital is tripled, Japan may have to provide
some 60 billion yen in new contributions.
Well before the crisis, the ADB had been considering a capital expansion in a
bid to increase loans for infrastructure development and environmental
conservation in Asian countries. The crisis has prompted the bank to front-load
the capital expansion.
At an emergency financial summit of major countries in November last year,
Japanese Prime Minister Taro Aso called on the ADB to implement an early
capital expansion.
==Kyodo