Thursday, April 30, 2009

Asian Development Bank to boost lending

Another one of the big banks has made an announcement to boost lending to fight off the global recession. The Asian Development Bank says they will boost lending by $165 billion dollars, that triples their normal efforts.

From this Associated Press article that we found in Newsday, we find more details on the decision from the banks board of directors.

The Manila-based bank's board of governors said an overwhelming majority of the ADB's 67 member countries voted to endorse the 200 percent increase to ADB's current $55 billion of capital.

"This substantial increase is a resounding vote of confidence from our shareholders for what we can achieve as a premier development partner in the region," ADB President Haruhiko Kuroda said. "We must do all we can to prevent the reversal of hard-won gains for our region in social and economic development, and in poverty reduction."

The decision comes just before the ADB's annual meeting in Bali, Indonesia, on May 2-5.

The capital boost allows the ADB to substantially increase its support to countries affected by the global downturn and to provide an additional $10 billion over the next few years for crisis-related assistance.

ADB estimates the financial crisis will add 60 million people this year in developing Asia to those already trapped in extreme poverty and another 100 million in 2010. Those are in addition to 903 million Asians already living on $1.25 or less a day.

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