Japan will provide $60 billion to expand IMF`s resources
Baku, April 17 (AZERTAC). Japan said it will provide $60 billion to the International Monetary Fund`s effort to expand its resources and shield the global economy against any deepening of Europe`s debt crisis. Finance Minister Jun Azumi unveiled the commitment in speaking to reporters in Tokyo today before semiannual meetings of the IMF and World Bank in Washington April 20-22. Azumi said he hopes for an early agreement among Group of 20 members, who will also gather in Washington, on contributions to the IMF.
Japan, the world`s third-largest economy, becomes the largest donor yet outside of Europe to IMF Managing Director Christine Lagarde`s campaign to bolster the fund`s resources for the second time in three years. Azumi said that the stance of China, the world`s largest holder of foreign-exchange reserves, is in the same direction as Japan`s and that he hopes Japan`s pledge will accelerate the commitments of others.
“It`s in everyone`s best interest that Europe gets back on its feet as soon as possible,” said Matthew Circosta, an economist at Moody`s Analytics in Sydney. The announcement may “add stability to financial markets that had been weakening over the last few weeks as the crisis flared up again, particularly in Spain.” Azumi said that while it may not be possible to reach an overall agreement on expanding the IMF`s resources in Washington, it`s “fully possible” over a longer period. South Korean Vice Finance Minister Shin Je Yoon also said it may be difficult this week, when major countries including the U.S. and Canada haven`t stated their positions, Korean-language news provider Yonhap Infomax reported, citing his comments at a conference in Seoul.
The IMF is co-financing bailouts in Greece, Portugal and Ireland. It currently has about $380 billion available.
The financial clout of Asia`s two biggest economies was illustrated by data yesterday showing China, the holder of the world`s largest currency reserves, remained the largest foreign U.S. creditor in February and Japan`s purchases of Treasuries picked up.
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