Japan may provide IMF with 10 trln yen aid -Nikkei
NEW YORK, Nov 12 (Reuters) - Japan is willing to draw from its foreign exchange reserves to provide the International Monetary Fund with up to 10 trillion yen in assistance to help boost emergency loans for emerging markets, the Nikkei business newspaper reported on its website on Wednesday.
Prime Minister Taro Aso will make the proposal at the global financial summit that will take place among leaders of the Group of 20 industrialized and emerging nations starting Friday in Washington, the paper reported.
Under the draft proposal, Japan will lend part of its currency reserves totaling $980 billion, or about 98 trillion yen, to the IMF for emerging market loans. Although the amount is still undecided, the maximum is expected to be about 10 percent of Japan's foreign exchange reserves, Nikkei said.
Nikkei also said Japan plans to propose a mechanism in which Asian governments and corporations will join forces to provide financial aid to Asian nations that need it. The aim is to provide funds to complete major infrastructure projects. (Reporting by Gertrude Chavez-Dreyfuss; Editing by James Dalgleish)
