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Published: Sunday October 4, 2009 MYT 7:55:00 AM

Britain, France to lend $4b for poor countries


ISTANBUL (AP) - Britain and France said Saturday they were lending $4 billion to assist poor countries.

French Finance Minister Christine Lagarde and Britain's Alistair Darling said each country is making $2 billion available to the International Monetary Fund, which will be responsible for loaning the money out.

"If we don't do anything, poverty will increase and it will take much longer for (poor countries) to recover from the crisis, which they had nothing to do with," Darling told reporters at a joint news conference following the meeting of the Group of Seven finance ministers.

The pledge from Britain and France was welcomed by the IMF's managing director, Dominique Strauss-Kahn. He said the funds would be loaned to poor countries, in Africa in particular.

He called on other countries to follow suit. "I pay tribute to Britain and France," he said. "I hope it will create an incentive for other countries."

Lagarde said the joint loan was part of Britain's and France's determination to "arrive at real progress" concerning development and climate change.

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