|
Thursday, October 16, 2008
World Bank denies offering funds for Asia
MANILA -- (Updated 11:06 a.m.) The World Bank on Thursday denied plans to commit funds for Southeast Asian countries that may suffer liquidity problems from the continuing financial crisis, a day after the Philippine president announced the initiative.
President Gloria Macapagal Arroyo said finance officials from the 10-member Association of Southeast Asian Nations and their partners from Japan, China, and South Korea agreed in Washington to set up a regional fund, with the World Bank committing US$10 billion.
What's your take on the Mindanao crisis? Discuss views with other readers
But in a statement in Washington, Jim Adams, the World Bank's vice president for East Asia and the Pacific, said the bank did not anticipate the establishment of such a fund and has not "discussed commitments of funds at the regional level."
"East Asian economies continue to perform strongly and have made significant changes since the 1997 Asian financial crisis making them more resilient to the impacts of the current global turbulence," he said.
"Like all countries, Asian economies must be prepared to deal with any effects of the turmoil," he said.
Adams confirmed that numerous discussions with individual governments were held during the recent Annual Meetings of the World Bank and the International Monetary Fund, and the institutions "stand ready to support all of our member countries across East
Asia to deal with the challenges arising from the financial crisis."
He said that the bank's private sector arm, the International Finance Corporation, was considering setting up a US$1 billion special fund to recapitalize small to medium-sized banks in poor countries with
insufficient government capacity.
He said IFC may raise another US$2 billion or more.
Philippine government officials did not immediately return calls seeking comment on Arroyo's statement.
Arroyo said Wednesday the Philippines was not among the affected countries, but did not say which ones may be using the fund. (AP)For more Philippine news, visit Sun.Star Iloilo. (October 16, 2008 issue)
Write letter to the editor. Click here. |
|
|
|
[return to top]
[home]
|
|
RP says World Bank shifted fund focus