IMF to borrow $100bn from Japan for loans to crisis-hit countries
The government of Japan has decided to allocate around $100 billion for loans to new economies that were hit hard by the world financial crisis.
Japan's Prime Minister Taro Aso is expected to reveal the plan at the summit of the leaders from twenty major countries that will gather at the weekend in Washington. The loan will be allocated from Japan's gold and currency reserves.
The money will be borrowed by the International Monetary Fund and distributed for urgent assistance programs. Tokio has also called on the richest countries, including China and the countries in the Middle East, to join the emergency assistance plan.
IMF has recently spent almost a quarter of its $200-billion reserve fund, by approving loans to Iceland ($2 billion), Ukraine ($15.6 billion). Negotiations are under way to issue loans to Pakistan ($14.5 billion), Hungary ($10 billion), Belarus ($2 billion) and Serbia, reports the Russian news agency Itar-Tass.
Japan's Prime Minister Taro Aso is expected to reveal the plan at the summit of the leaders from twenty major countries that will gather at the weekend in Washington. The loan will be allocated from Japan's gold and currency reserves.
The money will be borrowed by the International Monetary Fund and distributed for urgent assistance programs. Tokio has also called on the richest countries, including China and the countries in the Middle East, to join the emergency assistance plan.
IMF has recently spent almost a quarter of its $200-billion reserve fund, by approving loans to Iceland ($2 billion), Ukraine ($15.6 billion). Negotiations are under way to issue loans to Pakistan ($14.5 billion), Hungary ($10 billion), Belarus ($2 billion) and Serbia, reports the Russian news agency Itar-Tass.
