Japanese Prime Minister Yoshihiko Noda said Sunday he was concerned about the downside risk posed if the European debt crisis ripples into Asia, adding he will urge emerging countries and others to contribute to expanding the International Monetary Fund’s lending base to deal with the fallout from Europe.
“The main concern is the downside factor that would result if the European crisis spreads,” Mr. Noda said during an opening speech at an event in Tokyo with business leaders and academics.
The Group of 20 financial leaders said in April they will roughly double the IMF’s lending base through an injection of more than $430 billion. Japan has pledged to lend the IMF $60 billion.
Mr. Noda said he will encourage countries to make their decisions on how much they will contribute to IMF’s lending base at the upcoming G20 meeting in Mexico later this month, saying that will help to stem the European problems from expanding into a global crisis.