World Bank Denies Backing Asian Fund

The World Bank will assist East Asian countries affected by the ongoing financial crisis but will not help establish a regional fund to absorb debt in the region, said World Bank Vice President for East Asia Jim Adams. “We do not anticipate the establishment of a regional facility and have not discussed commitments of funds at the regional level,” Adams asserted, contrary to an earlier statement of Philippine President Gloria Arroyo that the global lender pledged USD10 billion to the fund. The bank’s private sector unit, the International Finance Corp., is mulling over plans to create a USD3 billion fund to aid small firms in poor nations affected by the financial turmoil. (“World Bank ready to help East Asia but not with fund” - Thomson Reuters, Oct. 15, 2008)

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