World finance officials to speed aid to Arab democracies

Leaders are discussing measures to quicken the flow of promised economic support, says Britain's treasury chief

Financial leaders from the world's most developed nations are discussing how to speed up the flow of tens of billions of dollars to help support democracies in North Africa and the Middle East, British Treasury chief George Osborne said Saturday.
Osborne told reporters that finance ministers from Europe, the U.S., Canada and rich Arab countries will also commit to boosting trade with the region during the talks Saturday.
Osborne spoke ahead of meetings between those finance ministers and the finance ministers of Egypt, Tunisia, Morocco and Jordan, as well as representatives of Libya's National Transitional Council.
"What you'll see today is confirmation that we want to see the EBRD (European Bank for Reconstruction and Development) expand the commitment of money now," Osborne said.
The bank is now changing its statutes so it can expand operations out of Eastern Europe and the former Soviet Union and into North Africa and the Middle East.
Osborne said financial officials will also "try to get some money to the EBRD in the short term so they can get going" ahead of the planned reform.
Along with financing from other international development banks, officials expect to mobilize "tens of billions of dollars" in lending over the next three years to aid the five countries invited to Saturday's meeting, Osborne said.
Osborne said officials would also commit to lifting sanctions on Libya, unfreezing its assets, and also "significantly get oil production going as quickly as possible."
The meeting in Marseille, France, follows a commitment in May to provide Egypt and Tunisia — which threw off longtime authoritarian regimes this year — with up to US$40 billion in funding to support their nascent democracies. Those uprisings ignited similar ones across the Middle East this year, including in Libya, where rebels have taken control of much of the country and are trying to establish a government.
Representatives from Libya, Morocco and Jordan were included in Saturday's conference as part of an effort to reward — and encourage — reform.
The Syrian government, which is involved in a bloody crackdown on dissent, was pointedly not invited.
The idea was hatched by the Group of Eight nations — Britain, Canada, France, Germany, Italy, Japan, Russia and the U.S. Several international funds and wealthy Arab countries are also expected to put up money for the initiative.