Maravi

Japan to start single loaning system to developing countries

Japan to start single loaning system to developing countries
By Joan Chirwa in Nagoya, Japan
Thursday November 01, 2007 [03:00]

DEVELOPING countries will soon start receiving technical assistance loans and grants under one financing arrangement from the Japanese government. Japan International Co-operation Agency (JICA) Chubu director general Hiroshi Yoneda said streamlining loan and grant disbursement for technical co-operation to developing countries could enhance availability of resources.

“Unlike the current arrangement where JICA and the Japan Bank for International Co-operation (JBIC) both provide technical loans and grants to developing countries, the new system will make us the largest bilateral development agency,” said Yoneda when 18 African journalists visited JICA Chubu on Tuesday. “It is important that money is put together and then given to the Least Developed Countries (LDCs) for technical assistance. This loaning programme will be flexible.”

Yoneda said the single loaning system from the Japanese government would make available resources of about US $10 billion for 155 countries currently receiving aid from Japan.

He further said Japan’s Official Development Assistance (ODA) was decreasing due to unsettled debt by some developing countries.
Most African countries will however not be affected by the trend since the Japanese government is making efforts to double technical and development aid to the continent by the end of this year.

In Zambia’s case, total Official Development Assistance (ODA) to the country up to Japan’s fiscal year 2005 totalled 49.49 billion Yen (approximately K1.6 trillion).

Japan has also provided debt cancellation of more than 74 billion Yen (approximately over K2.4 trillion) upon Zambia’s attainment of the HIPC completion point at the end of 2005.

“Japan’s ODA is not increasing, but it is rather decreasing because we have a lot of debt. Overall ODA is increasing but Japan’s contribution is decreasing,” Yoneda said. “However, there are countries that are really coming up such as the United Kingdom. Other European countries are also increasing ODA.”
Japan’s ODA last year dropped to US $11.6 billion from US $13.1 billion in 2005.

Its total Gross Domestic Product (GDP) stood at US $4.3 trillion in 2006, ranked second after the United States of America (USA) whose total GDP in 2006 was recorded at US $13.2 trillion.
Japan is widely known for its technology and automobile industries, making it one of the world’s largest exporters of automobiles and other technological machinery.

Labels: DEVELOPMENT, JAPAN, JBIC, JICA, LOANS

posted by MrK @ 5:29 AM