Japan announces Asia aid package

Japan's PM Taro Aso has announced a 1.5 trillion yen ($17bn;£11.6bn) aid package to help Asian countries weather the economic downturn.

• The money will be spent over three years on infrastructure projects and promoting trade.
• It is hoped the proposed funding, which will be finalised at a summit later this year, will boost regional growth.
• Mr Aso called on wealthy nations to help smaller countries and warned against protectionism.
• Asia’s banks have weathered the financial crisis better than their European and US counterparts.
• But the region’s export-dependent economies have been hit as the global downturn saps demand for consumer goods.
• “Japan is ready to provide ODA (overseas development assistance) of not less than 1.5 trillion yen or about $17bn in total,” Mr Aso told the World Economic Forum in Davos.
• “It will be necessary to strengthen regional cooperation towards strengthening Asia’s growth potential and expanding domestic demand,” Mr Aso said.
• Mr Aso also said that Japan’s development assistance would be on the precondition “that the flow of trade and investment not be prohibited”.
• “We will resolutely fight all protectionism,” he said.