Japan says to provide $60 billion in loans to IMF

Mon Apr 16, 2012 10:13pm EDT
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TOKYO (Reuters) - Finance Minister Jun Azumi said on Tuesday that Japan would provide $60 billion in loans to the IMF amid renewed concerns about Europe's debt woes, a move that it hopes will encourage other countries to contribute resources.

Group of 20 finance leaders major economies will meet this week in Washington to discuss a plan to raise new resources for the International Monetary Fund (IMF) to contain the euro zone's sovereign debt crisis.

"I am confident that many other countries will pledge contributions to the IMF," Azumi told a regular news conference after a cabinet meeting.

Spanish 10-year government bond yields rose above 6 percent on Monday for the first time since the beginning of December, fuelling concerns that Madrid could fail to meet deficit targets as the country acknowledged it has probably tipped into its second recession since 2009.

That would raise the risk of the euro zone's fourth-largest economy being pushed into seeking an international bailout.

(Reporting by Tetsushi Kajimoto; Editing by Chris Gallagher)