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Monday, 16th April 2012
In General Japan News,

Japan considers $60bn loan to IMF

The Japanese government is discussing a possible deal that would see the country lend the International Monetary Fund (IMF) around $60 billion (£38 billion) in a bid to strengthen its defences against the ongoing debt crisis in the eurozone.

Leaders in Tokyo are meeting with counterparts from other IMF member states, including China, to tie up potential contributions to the organisation, the AFP reported.

Should Japan take the decision to lend the sum, it would make the loan one of the biggest from an IMF member state.

The country is the second-largest contributor to the IMF behind the US and its willingness to offer the funds is an example of the nation's involvement in key discussions at both the IMF and the Group of 20 (G-20) leading nations.

It is thought that China will contribute around the same, while other emerging economies have urged European politicians to draw up their own plans.

Earlier this year, the IMF provided a 130 billion euro bailout package to prevent Greece defaulting on its debt repayments and potentially beginning the end of the eurozone.

Written by Mark Smith