On 14 March 2009, Japan announced a US$ 5 billion (€ 3.7 billion) loan fund to help developing countries hit by the global credit crisis to put in place running water, solar power systems and other environmental infrastructure.

Japanese Finance Minister Kaoru Yosano announced the initiative at the meeting of G20 finance ministers and central bank governors in London. The loans, provided by the Japan Bank for International Cooperation (JBIC), will be available to public and private sector infrastructure projects, mainly in Asia, over the next two years. The projects will have to benefit the environment by, for example, improving sewage, water supply and energy supply systems.

With capital flight from emerging economies a serious problem resulting from the crisis, the G20 leaders emphasised the need to provide them with financial and infrastructural support.

Related news: Water moves sharply up the political agenda, Source, 17 Feb 2009

Web sites:G20 meeting; JBIC

Source: Leika Kihara, Reuters, 14 Mar 2009

Tags: financing, sanitation, water supply