Philippines President Gloria Arroyo has puzzled her neighbours and the World Bank after she said on Thursday that a regional fund would be set up to deal with financial turmoil.
Arroyo said on Wednesday the World Bank had committed to initially provide $10 billion to a fund to buy toxic debt and recapitalise banks in the Asian region.
But other Asian countries and the World Bank expressed surprise about the announcement.
A World Bank official has subsequently said the bank has no plans to contribute to the fund, and the Asian Development Bank said it was too early to talk of contributions because the region was still economically sound.
The loan-to-deposit ratio of most Asian banks is estimated to be around 80 per cent, meaning that they can repay depositors without needing additional funds.(Britain News.Net)
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