01:29 GMT01 March 2021
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    China's World Bank: Opportunity or Threat? (57)
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    At the 2015 China Development Forum, held to discuss China's leading role in the 'new normal' of the world economy, the International Monetary Fund head welcomed the prospect of a development bank based in Beijing.

    The Managing Director of the International Monetary Fund, Christine Lagarde, told a conference in Beijing on Sunday that her organization would be "delighted" to cooperate with the development bank China is planning to be based in Beijing, with which she sees "massive" room for cooperation on infrastructure financing. 

    "We welcome China's formation of the Asian Infrastructure Investment Bank," said Lagarde, reports RIA Novosti from Beijing. "We believe that China has sufficient reasons to form such a versatile financial institution. I would very much like it if the IMF was able to allocate funds for the construction of infrastructure projects, but the IMF has other functions. Therefore, we very much want to cooperate with the AIIB."

    The AIIB, whose ranks of founding members have swelled to more than 30 in the wake of the UK's decision to become the first G8 economy to join the project earlier this month, is set to have authorized capital of $100 billion, and initial subscribed capital of around $50 billion. China has said it is willing to subscribe up to 50 percent of the capital for the bank, the formation of which has met with opposition from the US government, who have sought to discourage developed nations from joining by casting doubts on the bank's standards of transparency.

    Last week the finance ministries of fellow G8 members France, Germany and Italy joined the UK in applying to become a founding member of the bank, and on Wednesday Chinese Foreign Ministry spokesman Hong Lei called on all those interested in becoming founding members to make their decision to join before March 31, though he added that "the door will always be open for interested countries." 

    Lagarde is currently in Beijing for this year's China Development Forum, which is devoted to the discussion of China’s economic development in what Lagarde, Chinese President Xi Jinping and other analysts have called the "new normal" of monetary policy and economic growth, both in China and the world. "As China navigates the 'new normal' to become the world’s largest economy, the IMF stands ready to help," said Lagarde on Sunday.

    China's World Bank: Opportunity or Threat? (57)


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