TOKYO. July 6: Japan plans to double its Official Development Assistance (ODA) and is ready to contribute to the enhanced Structural Adjustment Facility (ESAF) at the International Monetary Fund, senior government officials said, reports Reuter.

Tbkyo is expected to meet strong demands from Its Group of Seven (G7) allies this week to cut Its current account surplus and stock domestic demand — and will retort by showing how much money it is funnelling to developing nations.

The ESAF gives low-cost, long term loans to the world's poorest natiops.

These initiatives will promote the flow of private sector capital

to developing nations in the long term, officials said.

Prime Minister Kiichl Miyazawa will give the other G7 leaders details of Japans funds for development Initiative totalling 120 billion dollar that . the unveiled in late June.

Through this Initiatives, Japan pledged to double the amount of ODA to dollar 70-75 ' billion and increase the amount of grant aid in that assistance.

Most of this money will go to Third World countries that are anxious they are losing money and attention to Russia and other Eastern European states following the collapse of com- ;

munism, the officials said. i

Leaders of G7 countries — i

the United Stats. Japan. i

Germany, France. Britain, Italy and Canada - meet on Jnly 7-9 to discuss global growth, world trade and support for Russia's economic and political reform and aid to developing nations.

The G7 are expected to discuss how to enhance ODA both in terms of quality and quantity, said a senior official at the Ministry of Foreign Affairs.

Japan is prepared to make a substantial contribution to the ESAF, to provide capital liquidity to developing countries, a senior official of the Ministry of. Finance (MOF) said.

The ESAF was set up six years ago and has so far committed about seven billion dollar to 22-low-incomc nations, mostly in Africa, to assist

economic adjustment efforts.

The current 8.5 billion dollar ESAF expires at the end of November. IMF Managing Director Michel Camdessus has said he wants to create a new fund of about the same size.

"The 07 nations are likely to agree at the summit to make a concrete effort to extend the ESAF." the senior foreign ministry official said.

Also Included in Japan's initiative Is lending by the Japan Export- Import Bank In Tandem with the IMF's extended fund facility (EFF) and stand-by loans, the MOF official said.

There Is a general shortage of capital in developing nations and we need to address this problem," he said.