Post date: Apr 17, 2012 11:31:49 AM
TOKYO, JAPAN (APRIL 17, 2012) (TV TOKYO) - Japan said on Tuesday (April 17) it will provide 60 billion U.S. dollars in loans to the International Monetary Fund (IMF), becoming the first non-European nation to commit money to boost the fund's firepower to contain the euro zone debt crisis.
Japanese announces it will provide 60 billion U.S. dollars in loans to the International Monetary Fund, making it the first non-European nation to commit new money for euro zone debt crisis containment.
"At the next joint session of the G20 and IMFC (International Monetary and Financial Committee) we plan to formally announce our support with funding of 60 billion U.S. dollars. More specifically, Japan has set up a special foreign exchange fund account which will loan the IMF (International Monetary Fund) up to 60 billion U.S. dollars per the IMF's request," Japanese Minister of Finance Jun Azumi said.
Japan's announcement comes ahead of the IMF and World Bank Spring Meeting and a G20 finance leaders' meeting in Washington.
Euro zone countries have committed about 200 billion U.S. dollars and other European Union nations additional 50 billion U.S. dollars.
Other economies, including major emerging markets China, Brazil and Russia, have said they are willing to chip in but were looking to get more voting power in return.
Azumi said it was important to strengthen IMF funding.
"Not just for the euro zone but also for Japan and the Asian countries, we believe strongly that it is important to strengthen IMF funding so as to take necessary steps for guaranteeing an end to the crisis," Azumi said.
The IMF, which acts as a lender of last resort for governments, said in January it would need 600 billion U.S. dollars in new resources to help "innocent bystanders" who might be affected by economic and financial spillovers from Europe.