Japan announced a $5 billion loan fund

15.03.09 / Uncategorized / Author: asia news ia

Japan announced a $5 billion loan fund on Saturday to help developing nations, hard hit by the global credit crisis, to put in place running water, solar power systems and other environmental infrastructure.

Capital flight is plaguing emerging economies as U.S. and European investors retreat to repair their balance sheets and lending at home.

The outflow of funds from emerging markets — and the accompanying economic pain — was a major concern when financial leaders of the G20 developed and big emerging economies met over the weekend in the south of England.

“The G20 confirmed the importance of supporting economies, boosting bank capital, enhancing infrastructure and ensuring smooth trade finance to deal with a sharp change in fund flows to emerging nations,” Finance Minister Kaoru Yosano told a news conference after the meeting.

Reuters