ID :
43854
Tue, 02/03/2009 - 12:47
Auther :
Shortlink :
https://oananews.org//node/43854
The shortlink copeid
Japan, World Bank set up $3 bil. fund to help poor nations` banks
TOKYO, Feb. 2 Kyodo -
Japan and the World Bank formally agreed Monday to launch a $3 billion fund to
recapitalize banks in poor nations so that they can continue lending and buoy
their economies battered by the ongoing global financial crisis.
Hiroshi Watanabe, chief executive officer of the Japan Bank for International
Cooperation, and Lars Thunell, CEO of International Finance Corp., signed the
accord in a ceremony at JBIC headquarters in Tokyo. JBIC will contribute $2
billion to the fund, while IFC will provide $1 billion.
IFC is a World Bank group member dedicated to promoting sustainable private
sector development in poor countries. Japanese Finance Minister Shoichi
Nakagawa and World Bank President Robert Zoellick struck a deal on the fund
last November, when they met in Washington on the sidelines of a global
financial summit.
''Even countries where the management of banks is sound face various problems
due to the negative impact from abroad in a globalized economy,'' Watanabe
said.
''This facility is intended to provide funds to countries without sufficient
fiscal capacity'' to support their troubled financial institutions as the
United States and European nations do, he added.
Thunell said the fund's goal is to strengthen the financial system of the
developing countries and limit the impact of the crisis on their real
economies.
The Swedish IFC chief said he expects the first countries to receive the fund's
support will be Central American and Caribbean economies that have been hit
hard by the ''almost tsunami wave'' of the credit crisis. Then African and
Asian countries will follow suit, he projected.
The $3 billion bank recapitalization fund will be run by IFC through a separate
dedicated fund management company and will consist of a $1,275 million global
equity fund and a $1,725 million subordinated debt fund.
IFC estimates that through the $3 billion capital injection into banks in poor
countries, those banks will be able to hold assets worth $75 billion in total,
with their lending capacity boosted.
Watanabe said Japan and the World Bank would welcome contributions to the fund
by new partners.
One of the main missions for JBIC, which is under the wing of the
government-owned Japan Finance Corp., is responding to disruptions in the
financial order in the global economy.
==Kyodo
Japan and the World Bank formally agreed Monday to launch a $3 billion fund to
recapitalize banks in poor nations so that they can continue lending and buoy
their economies battered by the ongoing global financial crisis.
Hiroshi Watanabe, chief executive officer of the Japan Bank for International
Cooperation, and Lars Thunell, CEO of International Finance Corp., signed the
accord in a ceremony at JBIC headquarters in Tokyo. JBIC will contribute $2
billion to the fund, while IFC will provide $1 billion.
IFC is a World Bank group member dedicated to promoting sustainable private
sector development in poor countries. Japanese Finance Minister Shoichi
Nakagawa and World Bank President Robert Zoellick struck a deal on the fund
last November, when they met in Washington on the sidelines of a global
financial summit.
''Even countries where the management of banks is sound face various problems
due to the negative impact from abroad in a globalized economy,'' Watanabe
said.
''This facility is intended to provide funds to countries without sufficient
fiscal capacity'' to support their troubled financial institutions as the
United States and European nations do, he added.
Thunell said the fund's goal is to strengthen the financial system of the
developing countries and limit the impact of the crisis on their real
economies.
The Swedish IFC chief said he expects the first countries to receive the fund's
support will be Central American and Caribbean economies that have been hit
hard by the ''almost tsunami wave'' of the credit crisis. Then African and
Asian countries will follow suit, he projected.
The $3 billion bank recapitalization fund will be run by IFC through a separate
dedicated fund management company and will consist of a $1,275 million global
equity fund and a $1,725 million subordinated debt fund.
IFC estimates that through the $3 billion capital injection into banks in poor
countries, those banks will be able to hold assets worth $75 billion in total,
with their lending capacity boosted.
Watanabe said Japan and the World Bank would welcome contributions to the fund
by new partners.
One of the main missions for JBIC, which is under the wing of the
government-owned Japan Finance Corp., is responding to disruptions in the
financial order in the global economy.
==Kyodo
