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US exploring ways to reward coalition partners: Report

The Bush administration is quietly looking for ways to provide financial aid to developing countries that join its anti-terrorist coalition and that might suffer economic fallout from any military action, media reports said on Thursday.

The Wall Street Journal reported that US Treasury Department officials were considering how the International Monetary Fund and World Bank could help allies with loans, and, possibly, deny aid to nations that defy Washington.

The Treasury Department, IMF and World bank officials were making internal assessments about what might be done for such frontline countries as Pakistan, Uzbekistan and Tazikistan, as well as other nations with large and potentially volatile Muslim populations such as Indonesia and Philippines.

"Funds can be created within the IMF to help countries adversely affected," an IMF official said.

The US does not control the boards of the lending institutions, which are owned by more than 180 member states. However, it is the largest shareholder and can expect support from European and other governments that join its anti-terrorist political and military coalition.

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