Indonesia is ADB's top borrower<\/p>\n
MANILA (AFP): Indonesia was the top borrower of the Asian
\nDevelopment Bank (ADB) in 1993 with US$1.293 billion in loans,
\nwhile energy and infrastructure got the lion's share of funds,
\nthe bank said yesterday.<\/p>\n
The Manila-based lender's 1993 annual report said that out of
\n$5.28 billion in loans approved last year, nearly 78 percent went
\nto development of energy resources and physical and social
\ninfrastructure.<\/p>\n
China was the number two debtor, receiving $1.05 billion,
\nwhile India got the biggest single loan, $300 million for a gas
\nflaring reduction project, said the report issued ahead of the
\nADB annual meeting.<\/p>\n
Net transfer of resources to the bank's borrowing members --
\nthe difference between what they got in loans and what they
\nrepaid and invested in the bank -- fell 20.5 percent in 1993 to
\n$938 million.<\/p>\n
The bank also announced it realized a net income of $570
\nmillion in 1993, a seven percent annual increase, and had an
\ninvestment portfolio of $725 million, down from $937 million in
\n1992.<\/p>\n
The ADB's roster of members rose to 55 last week with the
\nadmission of the Kyrgyz republic, the second former Soviet
\ncentral Asian state to join the bank after Kazakhstan. Uzbekistan
\nhas yet to complete formalities.<\/p>\n
ADB member countries -- 39 from the region and 16 from outside
\n-- are expected to approve a 100 percent general capital increase
\nto about $48 billion at the annual meeting in Nice, France in
\nearly May.<\/p>\n
Cumulative lending reached $47.7 billion at the end of 1993.<\/p>\n
Capital<\/p>\n
Developing members of the ADB had pushed for the capital
\nincrease with the support of Japan, but the United States and
\nother donors sought a policy review, leading to the ongoing
\n\"spring cleaning\" to weed out bad projects.<\/p>\n
The capital hike has yet to be ratified by ADB member
\ncountries, who are to meet early May in Nice, France.
\nSato, elected ADB president last November, said up to 20 percent
\nof ADB projects, heavy on infrastructure, had been
\n\"unsuccessful,\" but said this was still better than the track
\nrecord of similar institutions.<\/p>\n
The annual report said ADB members should widen the private
\nsector's role in infrastructure projects, estimated to cost up to
\n$1 trillion until 2000, because \"traditional sources\" were drying
\nup.<\/p>\n
Sato, a veteran Japanese finance ministry official and former
\nmanaging director of the Tokyo Stock Exchange, pledged to improve
\n\"efficiency, transparency, accountability and responsibility\" in
\nthe bank.<\/p>\n
The ADB will pursue a \"50-50\" rule setting aside half of
\nloanable funds for \"soft\" projects to attack poverty, save the
\nenvironment, check population growth, and improve women's lives
\nacross the region, he said.<\/p>\n
More than 700 million of the three billion Asians still live
\nin poverty despite its sustained economic boom, according to ADB
\nestimates.<\/p>\n
Sato said another \"very new challenge\" is to assist members
\nshifting from centralized control to a market economy like China,
\nMongolia, Vietnam, Cambodia, Laos and the former Soviet republics
\nlike Kazakhstan, the Kyrgyz republic and Uzbekistan.<\/p>\n
He said following dramatic growth in East and Southeast Asia
\nin the past two decades, new engines of regional expansion could
\nemerge in South India, particularly India, and Indochina, led by
\nVietnam.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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