5 December 2008
Read all the headlines concerning the international financial institutions from the past week
African Development Bank:
The Partnerships and Cooperation Unit (ORRU) [of the AfDB] organizes MDBs Roundtables on Trust Fund Management and Co-financing on the 4-5 December 2008 in Tunis, December 5, 2008 (APO) - Representatives from various MDBs attended the one and a half day meetings, including the Asian Development Bank (AsDB), European Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IADB), European Investment Bank (EIB), International Finance Corporation (IFC), International Monetary Fund (IMF) and the World Bank (WB).
Zambia signs US$ 24 million AfDB budget support loan - endorses African legal support facility agreement, December 3, 2008 (APO) - Zambia and the African Development Bank (AfDB) Group on Tuesday in Lusaka, signed a US$ 24 million Loan Agreement to finance the country’s Second Poverty Reduction Budget Support (PRBS) program, which aims at developing the private sector and improving public finance management.
Botswana's former president visits AfDB, December 3, 2008 (All Africa website) - Under the African Development Bank (AfDB) Group's Eminent Speakers Program, Botswana's former President, Festus Mogae, has been invited to address a seminar at the Bank's Temporary Relocation Agency in Tunis. He will address Bank Staff, officials of international organizations and members of the diplomatic corps on Thursday, December 4, 2008, at 9:45 A.M on the topic "Extractive Industries and Africa's Development: Lessons from Botswana".
Update 1-AfDB says to loan Nedbank $100 million, December 1, 2008 (Reuters) - The African Development Bank (AfDB) has agreed to lend Nedbank Capital $100 million to fund projects in Africa, it said on Monday. Nedbank Capital, a division of South Africa's fourth-biggest bank Nedbank (NEDJ.J: Quote, Profile, Research, Stock Buzz), will be given the loan in long-term foreign currency, the AfDB said.
Algeria increases shares in African Development Bank, November 26, 2008 (African News Agency) - Algeria, a founding member of the ADB, has decided to increase its shares in the African Development Bank to 402 and worth US$4.85 million, APA has learned here.
AfDB and Badea sign protocol agreement, November 24, 2008 (Trading Markets website) - The AfDB and the Arab Bank for Africa's Economic Development (BADEA) on Thursday, November 21, 2008, in Tunis signed a protocol agreement to strengthen cooperation ties between both institutions in support of Africa's sustainable development. The agreement also seeks to strengthen technical and financial cooperation ties between African countries and the Arab world in order to promote Arab-African solidarity.
Call for frequent domestic African research, November 23, 2008 (Joy Online) - Nana Addo Dankwa Akufo-Addo, presidential candidate of the New Patriotic Party (NPP), on Saturday urged African financial researchers and institutions to conduct research on the economies of their countries frequently in order to chart a unique course to prosperity and modernisation.
Asian Development Bank:
ADB asks incoming [Bangladeshi] government to continue with reforms, December 4, 2008 (BD News 24 website) - Asian Development Bank's South Asia chief Kunio Senga on Thursday urged the next elected government to press on with the caretaker government's reforms in banking and economic sectors. "Bangladesh has already begun harvesting the positive outcome of those programmes taken over the last two years to maintain macroeconomic stability," Senga, director general of South Asian Department of the ADB, told reporters.
$810m ADB loan to improve power distribution system, by Sher Baz Khan, November 30, 2008 (Dawn Media website) - The Asian Development Bank will provide $810 million to help Pakistan overcome line losses in its power distribution system, now approaching 40 per cent. An agreement was signed by the government and the ADB here on Saturday. The $810 million 10-year power distribution enhancement programme was approved by the bank in September this year.
Call for Asian lender of last resorts, by P. S. Suryanarayana, November 26, 2008 (The Hindu online) - Proposing “a new financial architecture in Asia,” Union Minister of State for Commerce and Power, Jairam Ramesh, has called for an updated expansion of the existing Chiang Mai Initiative (CMI). The objective is to put in place “a regional lender of last resort.”
ADB to launch trade facilitation plan, November 24, 2008 (Pakistan Observer online) - Pakistan will be the first country where the Asian Development Bank plans to launch its Trade Finance Facilitation Programme (TFFP), aimed at attracting private capital to support development in the poorest countries of Asia.
European Bank for Reconstruction and Development:
Prime Minister of Armenia meets EBRD representatives, December 4, 2008 (Public Radio of Armenia website) - Greeting the guests, the Prime Minister expressed confidence that this visit of the EBRD delegation would serve as a new impetus for the further reinforcement and deepening of our country’s cooperation with the Bank. Tigran Sargsyan noted that despite the problems with implementation of some programs in our country, rather serious work has been done over the past years to make the cooperation more effective and raise it to a qualitatively new level
EBRD, "SamrukKazyna" Fund sign agreement on establishment of investment fund, December 3, 2008 (Kazinform website) - EBRD and the National Welfare Fund "Samrukkazyna" will establish investment fund "Kazakhstan Growth Fund". President of EBRD Thomas Mirrow and chairman of the board "SamrukKazyna" Fund Kairat Kalimbetov have signed an agreement on the establishment of mutual fund today in Astana, Kazinform refers to the Press Service of the Fund.
EBRD and UniLeasing Complete First Project on Introduction of European Governance System, December 1, 2008 (Trend Capital website) - European Bank for Reconstruction and Development (EBRD) and UniLeasing CJSC completed the first project on introduction of the European governance system in Azerbaijani leasing company,” John Grimmett, the coordinator of the project, said. According to Grimmett, in 2004, the Fund for support of countries with transitional period was established through the initiative of EBRD.
Inter-American Development Bank:
IDB, FirstCaribbean to establish regional credit guarantee facility, December 3, 2008 (Portal Fator Brasil website) - The Inter-American Development Bank and FirstCaribbean International Bank will establish the first risk-sharing guarantee facility for the Caribbean region to support long-term lending for infrastructure, tourism and mid-size businesses with strong potential to generate jobs and boost productivity.
International Monetary Fund:
IMF blocks Pakistan stocks bail-out - bourse official, by Sahar Ahmed, December 4, 2008 (Forbes website) - The International Monetary Fund is blocking the Pakistani government's plan to help provide a fund to help distressed investors liquidate holdings in the stock market, a senior exchange official said on Thursday. 'The IMF is not allowing any government guarantee for a fund to bail out the stock market,' said the official, who requested anonymity because the market authorities were still discussing ways to handle the situation.
Bitter IMF pills difficult for Asia to swallow, December 2, 2008 (China Daily) - As the global economic crisis worsens, the International Monetary Fund has returned to the center of the world's economic stage. At the recent G20 meeting held in Washington, leaders agreed to give more resources and enhance the function of the fund as a way to cope with the ongoing economic crisis.
IMF deal flexible, deal may be signed in December, December 1, 2008 (Hurriyet Daily News website) - An agreement with the International Monetary Fund may be signed as soon as December, a top economy bureaucrat says. The IMF is flexible on public spending, he notes, requesting anonymity. Still, it is not yet certain whether the deal will be a regular standby or a precautionary one.
$100m IMF aid vow, by Arthur Macdonald, December 1, 2008 (Gulf Daily News) - The Japanese government is prepared to lend the International Monetary Fund $100 million to overcome the world economic crisis. "International trade and Japanese business with its partners are based on the US dollar system and it is in the interests of the country and the GCC states to support that system," the Japanese Ambassador Takeshi Kondo said yesterday when he outlined the moves his Prime Minister Taro Aso was proposing to overcome the crisis.
Developing nations seek IMF reform, by Aldo Caliarim, November 30, 2008 (Al Jazeera English website) - The top executives of the World Bank and the International Monetary Fund (IMF) – both Bretton Woods Institutions (BWIs) – have conspicuously decided not to attend the much-vaunted UN-sponsored Doha conference on financing for development. The absence is all the more startling because there remains a clear need for a swift and broad-based response to the financial crisis.
IMF loans total $41.8 billion in November, 'busiest' month ever, by Christopher Swann, November 26, 2008 (Bloomberg website) - The International Monetary Fund this month lent more money to cash-strapped governments than it has in the past five years combined. The IMF agreed this month to $41.8 billion in loans, approving $16.4 billion for Ukraine, $15.7 billion for Hungary, $2.1 billion for Iceland and $7.6 billion for Pakistan.
Monetary Fund approves $7.6 billion loan to Pakistan, by Jane Perlez, November 25, 2008 (NY Times) - The International Monetary Fund approved a $7.6 billion loan for Pakistan on Tuesday to prevent it from defaulting on its debt and to help stabilize its economy. The loan, under discussion for more than a month, at first met strong resistance from the Pakistani government, which sought money on more generous terms from other countries.
World Bank:
Update 2-World Bank agrees to lend Eskom up to $5 bln, by Wendell Roelf, December 4, 2008 (Reuters) - The World Bank has agreed in principle to lend South African power utility Eskom [ESCJ.UL] up to $5 billion for an expansion programme that is crucial for the mining sector, a senior IFC official said on Thursday.
World Bank arm sees delays in Zambia power project, by Shapi Shacinda, December 2, 2008 (The Guardian) - A key power project intended to plug Zambia's power deficit will be delayed by several months due to the global financial crisis and technical difficulties with the initial project site, a World Bank arm said on Tuesday. Saleem Karimjee, the International Finance Corporation (IFC) manager for the Southern African region, said the proposed 750 megawatt Kafue Gorge Lower hydropower station, which was due for construction in 2009, would be delayed because it needed to change sites.
Mass tribunal charges World Bank, IMF, ADB, December 2, 2008 (Energy Bangla website) - An independent mass tribunal in Dhaka on Monday charged the World Bank and two other lending agencies with offences of causing damage to Bangladesh’s economy and society and asked the government to take steps to realise reparations from them.
World Bank boosts mineral sector, by David Muwanga, November 30, 2008 (New Vision Online) - The World Bank has approved a $5m (about sh9.9b) credit to finance to the Sustainable Management of Mineral Resources Project. The additional credit will strengthen the Government’s capacity to develop a sound minerals sector based on private investments and improvements in selected artisanal and small scale mining areas.
World Bank shocked over Rs 40b relief to power consumers, by Shah Hasan, November 26, 2008 (Pakistan Observer website) - World Bank has come out with anger over the recent decision of the government under which the Zardari regime has not fully passed the 31 percent increase in tariff, earlier recommended by Nepra to end consumers. Rather the government of the day slashed down the tariff by 13 percent for certain categories of power consumers.