ADB set to triple capital base to better cope with crisis+

TOKYO, March 19 Kyodo -
The Asian Development Bank has proposed a threefold increase in its capital
base so that it can expand lending to member countries hit hard by the current
economic crisis, bank officials said Thursday.
The plan to increase capital for the first time in 15 years will be officially
tabled at an April 6 board meeting and put to a vote. The ballots cast in
postal voting by the bank's 67 members will be counted by the end of April,
they said.
The largest capital boost proposal since the bank was established in 1966
appears certain to gain approval as the Manila-based bank's largest
shareholders -- Japan and the United States -- are backing the plan.
Finance ministers and central bank governors of the Group of 20 major
industrialized and emerging economies also endorsed ''a substantial capital
increase'' for the ADB to help support the poor during their meeting in
southern England last week.
As of the end of 2008, the ADB was capitalized at about $55 billion. After the
capital boost of around $110 billion, the bank will be able to extend $13
billion in annual lending, up from the current $9 billion, to its middle-income
borrowers, the officials said.
The shareholdings of member countries will remain the same. Japan, which holds
a 15.6 percent share, will be required to additionally contribute roughly 55
billion yen to the bank to realize the capital boost.
==Kyodo
2009-03-19 19:35:25