ADB raises $12-B new funds

Amid a bleak global economic scenario, the Asian Development Bank top chief announced that it has raised $12 billion to fund its anti-poverty efforts

MANILA, Philippines [UPDATED] – Amid a bleak global economic scenario, the Asian Development Bank top chief announced that it has raised $12.4 billion to fund its anti-poverty efforts.

ADB president Haruhiko Koruda confirmed this in a press briefing on Wednesday, May 2, the first day of its 2012 ADB Annual Governors Meeting in Manila.

“I am very pleased to announce that we have secured a replenishment of Special Drawing Rights (SDR) 7.9 billion, or $12.4 billion, for the Asian Development Fund (ADF XI), which is ADB’s concessional window for the region’s poorest countries,” Koruda said.

This fund for its next 4-year Asian Development Fund (ADF) covering 2013 to 2016 is bigger than the previous funding period’s $11 billion.

“ADF borrowers face significant development challenges, and have fewer resources of their own to address them. We particularly appreciate the strong support and generosity of our donor countries in view of the difficult challenges many are facing at home themselves,” said Kuroda.

The ADF provides concessional loans to its 67 member countries to fund various projects, from schools and bridges to health clinics and roads, with the aim of improving the lives of the region’s poorest.

Japan again emerged as the biggest donor after a series of negotiations for contributions and pledges from its member countries.

Bangladesh is one of the largest recipients of ADF resources and was one of 6 ADF recipient countries who participated in the negotiations.

Over 4,000 central bank chiefs, key financial officials from the ADB’s member countries, and investors are in Manila from May 2 to 5. – Rappler.com