12 December 2008
Read all the headlines concerning the international financial institutions from the past week
African Development Bank:
AfDB extends up to $450 mln for Guinea aluminia venture, December 11, 2008 (Reuters Africa) - The bank approved a loan of $200 million and agreed to syndicate an additional $100 million loan among commercial banks and mobilise up to $150 million in parallel co-financing by development institutions, the bank said in a statement.
Women locked out of Sh700m loans, by Benson Kathuri, December 9, 2008 (The Standard Online) - Women entrepreneurs cannot access more than Sh700 million from the African Development Bank (AfDB) due to unfriendly lending procedures by local commercial banks. A group of women traders lamented that most banks were scaring away women borrowers by demanding unrealistic security for loans.
Asian Development Bank:
Asian Development Bank creates $200m CO2 fund, December 11, 2008 (Sustainable Business website) - The ADB-administered Future Carbon Fund aims to raise up to $200 million to help finance renewable energy, energy efficiency and other greenhouse gas (GHG) mitigation projects undertaken in its developing member countries (DMCs).
ADB cuts its projection for Asia growth in 2009, December 11, 2008 (WSJ) - The Manila-based development bank now expects developing Asia to expand 5.8% in 2009, down from a previous forecast of 7.2% in September. Next year's projected growth is also lower than a likely 6.9% rise in 2008 and actual 9.0% growth last year.
Group launches report indicating ADB's failure to protect the poor, December 8, 2008 (GMA online) - An international group monitoring the Asian Development Bank (ADB) launched last Friday a scathing report exposing the ADB’s failure to implement its current safeguard policies, resulting in impoverishment across Asia.
ADB gives Indonesia $500 million to clean up world's diretiest river, by Nancy-Amelia Collins, December 5, 2008 (VOA online) - The Asian Development Bank has approved a $500 million loan to Indonesia to clean up the nation's Citarum River, often called the worlds most polluted. But activists worry the loan does not have enough safeguards in place to stop corrupt practices.
European Bank for Reconstruction and Development:
EBRD to lend Kazakhstan $75 million for energy efficiency, December 10, 2008 (Easy Bourse website) - The loans will be provided through local Kazakh banks, which face repayments of $10.6 billion in foreign debt next year and have found it difficult to find funding for new lending. The Kazakh government is injecting $4 billion in new capital into major Kazakh banks.
EBRD boosts operations of ProCredits Bank in Armenia, December 10, 2008 (The Financial) - The European Bank for Reconstruction and Development is providing ProCredit Bank in Armenia with USD 7 million to further boost its on-lending to micro and small enterprises (MSEs). The loan will consist of two tranches of USD 2 million and USD 5 million.
EBRD launches green CO2 trading contracts for governments, by Michael Szabo, December 8, 2008 (The Guardian) - The European Bank for Reconstruction and Development (EBRD) on Monday launched the first standardised "green" contract for governments seeking to trade greenhouse gas rights under the Kyoto Protocol, a trade which some have dubbed "hot air".
Inter-American Development Bank:
IDB approves financial sector reform programme for Guyana, December 12, 2008 (Caribbean Net News) - Minister of Finance Dr Ashni Singh has welcomed Wednesday's approval by the Executive Board of the Inter-American Development Bank (IDB) of a US$15 million Financial Sector Reform Programme for Guyana.
IDB, World Bank offer Mexico $5.5 billion in loans, December 11, 2008 (AP) - The banks say they are helping countries like Mexico weather the current credit crisis and supporting government plans to boost economic activity during the global downturn.
International Monetary Fund:
Weak regional safety net may push Asia to IMF - Fed, by Yoko Nishikawa, December 12, 2008 (Reuters) - Asian casualties of the global financial crisis may have no choice but to endure the humiliation of seeking help from the IMF or the U.S. Federal Reserve as efforts to create regional safety nets falter.
IMF urges Mali government to cease commercial role, December 12, 2008 (Reuters Africa) - The International Monetary Fund on Thursday agreed to disburse $7.5 million to Mali under a $41.7 million loan program and urged the government to withdraw involvement in money-losing commercial activities draining state coffers.
IMF will grant credit to Costa Rica if needed, by Gillian Gillers, December 12, 2008 (Tico Times) - In a visit to Costa Rica yesterday, International Monetary Fund director Dominique Strauss-Kahn said the fund would grant as much credit to Costa Rica as the country needs to weather a global financial crisis.
IMF loan to help Malawi meet GDP targets, December 12, 2008 (Reuters Africa) - A $77.1 million IMF loan to help Malawi reduce the impact of high fuel and fertilizer costs would help it meet a revised economic growth target of 8.7 percent this year, the finance minister said on Thursday.
IMF urges prudent Zambia economic management, December 11, 2008 (Reuters Africa) - While Zambia has pursued sound fiscal policy in recent years, execution of the budget has "exhibited weakness", IMF head of mission to the southern African country, Francesco Caramazza said in a statement. "In particular, the pattern of spending has deviated significantly from what has been budgeted, notably in regard to capital spending," Caramazza said.
World Bank:
World Bank plans $14 billion India lending program (Update 1), by M.C. Govardhana Rangan and Kartik Goyal, December 12, 2008 (Bloomberg) - The World Bank plans a $14 billion lending program for India over the next three years aimed at speeding up infrastructure programs and supporting the nation’s seven poorest states, the agency said today.
Over 160 citizen groups from dozens of countries endorse UN Global Climate Fund: International call for fund outside World Bank, December 11, 2008 (Polaris Institute) - Groups argue that a Global Climate Fund under the UN Convention on Climate Change (UNFCCC), would be a vital component of any new global climate agreement that involves the large-scale transfer of financial resources from rich to poorer countries in order to help these nations reduce the emissions that cause global climate change.
Poland will sell its emission credits, December 11, 2008 (Warsaw Business Journal) - Poland has entered an agreement with Ireland and the World Bank to sell both parties greenhouse gas emission rights under the Kyoto Protocol.
World Bank: Economies of RP, Asia to recover in 2010, by Jesus F. Llanto, December 10, 2008 (ABS-CBN online) - The World Bank (WB) expects the Philippines and other East Asia and Pacific economies to post slower 2008 growth rates, skid further in 2009, before exports pick up and credit and investments start flowing again in 2010.
CLIMATE CHANGE: 'Don't leave it to the World Bank', by Ramesh Jaura, December 10, 2008 (IPS news) - Industrialised countries may be required to provide more than 100 billion dollars for developing countries to build low-carbon economies, according to unofficial estimates. This money should not be handled by the World Bank, 142 organisations fighting for climate justice said in a joint statement Tuesday (Dec. 9) at the UN climate talks under way in the Polish city Poznan
World Bank's 'wrong advice' left silos empty in poor countries, by Alison Fitzgerald and Helen Murphy, December 10, 2008 (Bloomberg) - Inside and out, the rusted towers of El Salvador’s biggest grain silo show how the World Bank helped push developing countries into the global food crisis. Inside, the silo, which once held thousands of tons of beans and cereals, is now empty. It was abandoned in 1991, after the bank told Salvadoran leaders to privatize grain storage, import staples such as corn and rice, and export crops including cocoa, coffee and palm oil.
Nigeria: World Bank pledges to assist NHIS, by Kemi Yesufu, December 8, 2008 (All Africa website) - World Bank at the weekend assured that it will assist the National Health Insurance Scheme (NHIS) in the area of funding. The financial aid from the bank, according to a statement in Abuja, is to support the NHIS in its bid to create access to affordable healthcare for Nigerians.