Haruhiko Kuroda, president of the Asian Development Bank (ADB), announced in Bali on Saturday the lender would establish a 3-billion-U.S. dollar emergency loan facility to help developing member countries cope with the financial crisis in 2009-2010.
The mechanism, Countercyclical Support Facility (CSF), would provide emergency loans faster and cheaper under ADB's existing special loan facilities, Kuroda said.
"I believe this will be a very welcome initiative to assist faltering economies and, most importantly, protect the poor from the worst impacts of the crisis," the president said.
The CSF -- pending Board of Directors' approval -- would be available to developing member countries which qualify for loans from ADB's Ordinary Capital Resources (OCR), said Kuroda at a press conference at ADB's 42nd Annual Meeting. The OCR is a pool of ADB funds available for lending to middle-income countries at near market terms.
The CSF announcement comes just two days after the ADB's Board of Governors agreed to triple ADB's capital base from 55 billion U. S. dollars to 165 billion U.S. dollars. The 200 percent increase allows the ADB to substantially increase its support to countries affected by the global downturn. The new facility would form part of that assistance.
(Xinhua News Agency May 2, 2009)
