19 December 2008
Read all the headlines concerning the international financial institutions from the past week
African Development Bank:
Liberia: GOL, AfDB/IFAD sign U.S.$28 million program, December 17, 2008 (All Africa website) - The program will seek to improve the livelihoods and living conditions of rural communities through restoration and development of agricultural production...Speaking during the ceremony, Agriculture Minister, J. Chris Toe, expressed delight over the signing of the Aide Memoir, saying that the program is part of the "Lift Liberia" Poverty Reduction Strategy (PRS).
Asian Development Bank:
Trying to stop pollution from killing a lifeline, by Peter Gelling, December 17, 2008 (NY Times) - The [Asian] development bank committed this month to provide Indonesia with a $500 million, multiyear loan to finance a wide-ranging cleanup [of the Citarum River] and rehabilitation plan devised by the bank and the government. But even before the bank has begun to dole out the loan, it has opposition from local civic groups. They fear that the government is taking on too much debt and that there are inadequate protections to ensure that the poor see enough benefits and that the money is not lost to the corruption that is endemic in Indonesia.
ADB approves measures to enhance operations evaluation function, December 15, 2008 (The Financial) - The Asian Development Bank's (ADB) Board of Directors on December 15 approved a series of measures to further enhance the independence and overall effectiveness of ADB's operations evaluation function. The measures are based on a comprehensive review of the Bank's operations evaluation function conducted by a Working Group set up by ADB President, Mr Haruhiko Kuroda, in March.
ADB seeks more pledges for post-2012 carbon fund, by Thanh Nguyen, December 15, 2008 (Thanhnien News) - The ADB is seeking private sector commitments from its member countries to its new post-2012 carbon fund, which is planned to commence next month. So far the Manila-based bank's founding public sector partners including Finland and Sweden have pledged over $US 100 million, which is half of the Future Carbon Fund.
ADB to provide aid to Nepal for development of local bodies, December 15, 2008 (China View) - The Asian Development Bank (ADB) has agreed to provide over 8.24 billion Nepali rupees (some 105.6 U.S. dollars) of financial support to Nepal for the development of local bodies and communities. Representatives of the ADB and the Nepali Ministry of Finance signed the agreement of assistance in Kathmandu on Monday.
European Bank for Reconstruction and Development:
EBRD funds €34 million logisitcs project in Russion regions, December 16, 2008 (The Financial) - The European Bank for Reconstruction and Development is providing a loan facility totalling €34.2 million to fund the construction of modern warehousing facilities outside Nizhny Novgorod, an important centre of economic activity and regional transport hub 440 km southeast of Moscow.
Inter-American Development Bank:
Global Law Firm Clifford Chance Plays Key Role in Financing of Historic Multi-Billion Dollar Expansion of Panama Canal, December 16, 2008 (Market Watch) - On December 9, 2008, Clifford Chance clients Inter-American Development Bank (IDB), International Finance Corporation (IFC), European Investment Bank (EIB), Japan Bank for International Cooperation (JBIC) and Andean Finance Corporation (CAF) signed an historic $2.3 billion financing agreement with the Panama Canal Authority to fund the expansion of the Panama Canal. The funding initiative marks the most significant expansion effort -- and only financing -- in the Canal's 94-year operating history.
IDB to double Haiti aid next year, by Evens Sanon, December 15, 2008 (AP) - IDB President Luis Alberto Moreno, in comments at the National Palace in Port-au-Prince, said the bank will double its grants to Haiti to US$100 million for 2009 to help the country's government with a raft of vital investments.
International Monetary Fund:
IMF lauds Iceland's progress in battling economic crisis, urges Germany to hike spending, December 19, 2008 (AHN) - International Monetary Fund director-general Dominique Strauss-Kahn said Thursday Germany must boost its spending to battle recession. The admonition came the same day that German Chancellor Angela Merkel pushed for more investments in the western states and announced that 16 German states will help fund a second package in January.
Botswana's decade of rapid GDP growth is over, Moody's says, by Nasreen Seria, December 19, 2008 (Bloomberg) - Botswana, the world’s biggest diamond producer, relies on exports of the gems for about two-thirds of government revenue. The U.S., which is in its deepest recession in a quarter of a century, accounts for half of the world’s diamond sales. “The recent collapse in commodity prices as a consequence of the onset of the global recession is likely to have a dampening effect on diamond as well as other resource exploration and development,” Kristin Lindow [Moddy's Investors Services vice president] said.
IMF sees positive intitial results from Georgia's standby arrangement, by Venla Sipila, December 19, 2008 (Georgian Daily) - In its first review of Georgia's progress in its current International Monetary Fund (IMF)-supported programme, the international lender gives a positive assessment of the country's performance so far, stressing, however, that challenges persist and the need to further strengthen policies may arise in the current difficult and volatile external environment.
Israel warned against halting cash flow to Gaza, by Karin Laub, December 15, 2008 (AP) - Israeli restrictions on cash shipments to Gaza banks, meant to weaken the territory's Hamas rulers, are largely counterproductive and ultimately harm Palestinian moderates, top international aid officials warned in a letter to Israel's prime minister. The letter, obtained by The Associated Press, was signed by World Bank President Robert B. Zoellick, International Monetary Fund Managing Director Dominique Strauss-Kahn and international Mideast envoy Tony Blair.
IMF sees risks of prolonged global crisis, by Andrew Hay, December 15, 2008 (Reuters) - The global economy could fall into prolonged crisis, spreading social unrest unless governments expand and implement promised stimulus packages, the IMF Managing Director Dominique Strauss-Kahn said on Monday.
World Bank:
World Bank: Russia may need help if oil falls more, by Catrina Stewart, December 19, 2008 (AP) - Russia would come under crippling financial pressure and may need to raise money externally if oil languishes at an average of $30 a barrel over the next two years, the World Bank predicted Friday. The bleak scenario would mark a rapid unraveling of Russia's oil-fueled economic gains over the past eight years, during which time the government has paid down most of its foreign debt and built up a vast stockpile of international reserves.
World Bank funds Mozambique, Malawi power project: report, by Charles Magwiro, December 19, 2008 (Reuters Africa) - The World Bank has released $88 million to fund the construction of transmission lines to carry power from Mozambique's Cahora Bassa Hydroelectric (HCB) dam to Malawi, the daily Noticias newspaper reported on Friday.
World Bank renews engagements with Kenya, December 16, 2008 (KBC) - The World Bank is renewing its engagement with Kenya after the post election crisis by supporting a number of projects. The Bank has also appointed a country director for Kenya after a long absence, during which Kenya complained that its communication with the Bank was not happening at the level it should.
World Bank Group: mobilizing public-private partnerships to finance infrastructure amid crisis is focus of World Bank Conference, December 16, 2008 (Insurance News Net) - A conference of experts will gather at the World Bank December 15-18 to identify ways to restore debt and equity market financing for roads, power generation and distribution and other infrastructure amid the global financial crisis. The meeting, to be attended by about 150 senior government officials and experts involved in public-private partnerships in infrastructure, comes as many countries, both developed and developing, undertake massive investments in infrastructure as part of major stimulus packages to respond to the economic crisis.