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IMF Approves New Program to Prevent Future Global Financial Crisis, Asian Development Bank Provides Loans to Sri Lanka

Strategic Insights

— 1 min read

The International Monetary Fund (IMF) has approved a new program to prevent future global financial crises, with Managing Director Michel Camdessus and Italian Finance Minister Carlo Ciampi announcing that the agency's executive board has given final approval to the creation of new "contingent credit lines" to make available billions of dollars of IMF loans to countries before a crisis strikes. Meanwhile, the Asian Development Bank (ADB) has provided four loans worth 190 million U.S. dollars to Sri Lanka in 1998, supporting the country's development. The Philippine government has also approved at least 10 new infrastructure projects worth 1.15 billion U.S. dollars to be implemented within the year, financing them through official development assistance under the government's Build-Operate-Transfer scheme.

Key Takeaways:

  • The IMF has approved a new program to prevent future global financial crises, with the creation of new "contingent credit lines" to make available billions of dollars of IMF loans to countries before a crisis strikes.
  • The ADB provided four loans worth 190 million U.S. dollars to Sri Lanka in 1998, supporting the country's development, with projects in transport, social infrastructure, agriculture, and natural resources, and the financial sector.
  • The Philippines government has approved at least 10 new infrastructure projects worth 1.15 billion U.S. dollars, including the Metro Manila Urban Transportation Project, the South Luzon Expressway Extension, and the Disaster Prevention and Road Rehabilitation Project.
  • The IMF Managing Director Michel Camdessus expressed confidence that the new program will be an important contribution for the world to be better prepared for future crises.
  • The ADB's support for Sri Lanka in 1998 amounted to 3.2 percent of the ADB's total loans approved last year.

Statistics:

  • 190 million U.S. dollars: Value of four loans provided by the ADB to Sri Lanka in 1998.
  • 1.15 billion U.S. dollars: Value of at least 10 new infrastructure projects approved by the Philippine government.
  • 80 million U.S. dollars: Amount allocated to the transport sector.
  • 70 million U.S. dollars: Amount allocated to social infrastructure.
  • 35 million U.S. dollars: Amount allocated to agriculture and natural resources.
  • 5 million U.S. dollars: Amount allocated to the financial sector.
  • 3.2 percent: Percentage of the ADB's total loans approved in 1998 that were provided to Sri Lanka.

Sources:

  • (IMF-New Program)
  • (Sri Lanka-ADB Loans)
  • (Philippines- Infrastructure News Provided by COMTEX (http://www.comtexnews.com))

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