page_title: Shōichi Nakagawa
section_title: Contribution to IMF
hierarchical_section_title: Shōichi Nakagawa / Contribution to IMF
caption_attribution_description: English: Japan has provided the IMF with an additional $100 billion to bolster the Fund's lendable resources during the current global economic and financial crisis.
context_page_description: Shōichi Nakagawa was a Japanese conservative politician in the Liberal Democratic Party, who served as Minister of Finance from 24 September 2008 to 17 February 2009. He previously held the posts of Minister of Economy, Trade and Industry and Ministry of Agriculture, Forestry and Fisheries in the cabinet of Junichiro Koizumi. He was regarded as one of Japan's most attractive public figures. On 4 October 2009, he was found dead in his Tokyo apartment. The cause of his death is yet to be determined; although no suicide note was found, there was also no indication of foul play.
context_section_description: On 10 October 2008, at G7 Nakagawa proposed in Washington a new emergency International Monetary Fund (IMF) loan program to help emerging and small economies such as Iceland, Brazil, Ukraine and Pakistan. The total size of the loans could be about US$200 billion (about 20 trillion yen) In some newly emerging economies and small and medium European countries, total assets in domestic financial institutions far exceed the national gross domestic products and those governments might be unable to raise necessary funds to help failing financial institutions through measures such as nationalisation. "Nakagawa plan" eased the concerns of small countries and emerging markets and reduced tension in international financial markets.
  On 14 February 2009, Strauss-Kahn stated 'This commitment is the single-largest supplemental financing contribution by an IMF member country ever, and it clearly demonstrates Japan's leadership and continuing commitment to a multilateral approach to global economic and financial challenges.' Strauss-Kahn said he hoped other countries would join Japan in providing support to the 185-nation institution. Prime Minister Taro Aso told Japan was ready to lend up to $100 billion from our foreign reserves to the IMF if it finds itself with insufficient funds to help emergency economies. Nikkei Business Daily reported that selling U.S. government bonds held by Japan to provide cash to the IMF would affect U.S. bond yields so Tokyo may consider lending U.S. government bonds to the IMF as collateral for it to raise funds.
  In a communiqué, G-7 ministers committed to acting jointly to support world growth and employment and strengthen the financial sector, while avoiding protectionism. The ministers met as the U.S. Senate voted in favor of a $787 billion economic stimulus plan—clearing the way for it to be signed into law by President Barack Obama. Strauss-Kahn emphasized "The biggest concrete result of this summit is the loan by the Japanese.... I want to thank the Japanese for having led the way.... Now I will continue with the objective of doubling the (IMF) resources," he told reporters. "It is the largest loan ever made in the history of humanity." Loans were made to a number of economies affected by the crisis, including Belarus, Hungary, Iceland, Latvia, Pakistan, Serbia, and Ukraine. It announced a precautionary loan for El Salvador last month and an IMF team has also been in negotiations with Turkey.
caption: Shōichi Nakagawa with Managing Director Dominique Strauss-Kahn,   IMF (Rome, 14 February 2009)
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