Japan announced a $5 billion loan fund today to help developing nations, hard hit by the global credit crisis, to put in place running water, solar power systems and other environmental infrastructure, Reuters reported. Under the initiative, announced by Finance Minister Kaoru Yosano at the G20 gathering, Tokyo will offer the money over the next two years for public and private sector infrastructure projects mainly in Asia. Loans will be extended to environmental projects such as promoting solar power and providing more efficient sewage and public transport systems. Tokyo hopes the loans, to be made through state-backed trade financier Japan Bank for International Cooperation, will help stimulate Asian emerging economies hit by slumping global demand, while also boosting long-term infrastructure.
