JAPAN TO LEND $100BN FOR EMERGING ECONOMIES

Mr Aso will call on other IMF member countries to inject additional permanent capital into the fund while offering $100bn out of Japan's $980bn in foreign exchange reserves as an interim measure.

Although the IMF is not in immediate need of additional capital, there is growing concern that the intensifying global crisis will force more countries to follow Iceland, Pakistan and others in seeking financial support from the fund.

“It is necessary for IMF member countries to increase the fund's financial resources in order for the IMF to extend necessary assistance to emerging economies that are expected to continue their roles as drivers of world growth,” Mr Aso will tell the G20, officials said.

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