The World Bank said it is to launch a $5 billion fund to invest in emerging economies’ local currency bond markets, called the Global Emerging Markets Local Currency Bond Fund (GEMLOC).
It will mobilize money from public and private institutional investors and will invest initially in 15-20 emerging markets. This sum will be invested in bonds of developing markets within the framework of an investment fund being created by the bank, vice-president, chief economist of the WB International Finance Corporation (IFC) Michael Klein told journalists on Monday. It is planned to collect within the framework of the given project $5 billion by the beginning of 2008. According to Itar-Tass news agency, the World Bank intends to invest 3% of this sum, some $150 million in bonds of Russian companies. Brazil, Mexico, Poland, China, India and South African Republic will get 10% each. Besides, Columbia, Hungary, the Czech Republic, Turkey, Malaysia, Indonesia and Thailand were also included in the list. It is supposed that 20 more countries may join it within five years. The project is planned for 10 years. (cnn)