The International Monetary Fund and Asian Development Bank offered support to China-based Asian Infrastructure Investment Bank (AIIB) on Sunday. Managing Director of International Monetary Fund (IMF) Christine Lagarde said that she was ‘delighted’ to cooperate with a development bank based in Beijing.
During the conference at the China Development Forum, leader of ADB and IMF expresses their willingness to cooperate with the AIIB. The bank will receive $50 billion funding from the Chinese government, in a bid to rival established financial institutions. The move has already worried United States, has urged the countries to rethink their decision on signing up.
“We welcome China’s formation of the Asian Infrastructure Investment Bank,” said Lagarde.
China’s Finance Minister Lou Jiewei stated that 27 countries have signed up for AIIB and the bank will provide loans to developing countries. Regional US allies like Australia, Japan and South Korea are expected to join the Beijing-based bank that will begin its operations by the end of 2015.
Western opposition over the bank came to an end after Britain, France, Germany and Italy are also set to join the bank. Secretary-general of the interim secretariat at AIIB Jin Liqun stated that eight more countries are willing to join by the March 31 deadline. Shareholders are likely to approve funding at the start to raise the capital to $100 billion.
Lou and ADB President Takehiko Nakao had reportedly discussed possible cooperation including safety standards. Lou added that AIIB will complement each other instead of competing with institutions like ADB, Manila-based lender, dominated by Japan and America.
AIIB’s Jin mentioned that Asian countries will receive major portion of the loans. Non-Asian countries will be allowed to hold only 25 percent of AIIB’s shareholdings. A spokesperson at the Chinese Finance Ministry stated that the door will always be open for developing countries.[ Via ]