Luxembourg Contributes to Financial Sector Development Partnership Fund

News Release | 28 May 2008

MANILA, PHILIPPINES - The Government of Luxembourg is contributing an additional EUR184,543 (about $292,500) to the Financial Sector Development Partnership Fund, which supports efforts to strengthen regional, subregional and national financial systems in Asia and the Pacific.

This brings Luxembourg's total commitments to the multi-donor fund to about $2.286 million.

The Financial Sector Development Partnership Fund, managed by the Asian Development Bank (ADB), finances a program of projects, including technical assistance operations, components of investment projects, and stand-alone grant-financed activities, focusing on the financial sector.

While all developing member countries of ADB are eligible for assistance under the fund, activities in the Lao People's Democratic Republic (Lao PDR), Viet Nam, and Mongolia, as well as regional activities in the Greater Mekong Subregion are given priority for Luxembourg's assistance.

"The additional assistance will be most helpful in further strengthening financial systems in the region," says Werner Liepach, Principal Director of ADB's Office of Cofinancing Operations.

Eligible activities include promoting regional markets; improving the policy, legal, regulatory, and supervisory frameworks, including corporate governance, internationally recognized standards and codes, financial system stability assessments, and financial sector assessment programs; strengthening and modernizing local financial institutions; and improving access to financial services by the poor.

Activities to improve the general investment climate, such as work to enhance the general legal and regulatory framework, strengthening governance, and boosting administrative procedures, are also eligible.