World Bank to form 3 bil. dollars fund to boost poor nations

Written by Writer on Friday, November 14th, 2008

World Bank to form 3 bil. dollars fund to boost poor nations

The World Bank plans to set up a special fund worth about 3 billion dollars with the aim of stabilizing financial systems in developing and poor countries, sources said Thursday.

The fund will be aimed at helping Asian and African countries with small economies, according to the sources. Japan is expected to contribute financially to the fund.

Working with the International Monetary Fund, which will continue to provide funds to small and midsize European countries, the World Bank will expedite efforts to build a “safety net” in an effort to deal with the global financial crisis, the sources said.

The World Bank is expected to propose the plan at the Group of 20 financial summit that opens in Washington on Friday.

The International Finance Corporation (IFC), a World Bank group member that provides investment and advisory services to boost the private sector in developing countries, is planning to provide 1 billion dollars to the fund.

In addition, the World Bank will call on countries to make individual contributions to the fund, according to the sources.

Japan’s contribution to the fund is likely to be made via the Japan Bank for International Cooperation (JBIC). According to the plan, JBIC will directly inject funds to troubled financial institutions.
(Nov. 14, 2008)