11:55 GMT29 October 2020
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    China's World Bank: Opportunity or Threat? (57)
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    AIIB is a Chinese alternative to Western-founded financial institutions, such as the World Bank or IMF, and is projected to focus on Asian infrastructure investment. A number of European states have joined a growing list of founding members of the nascent AIIB, despite US concerns.

    MOSCOW (Sputnik), Anastasia Levchenko — International Monetary Fund (IMF) welcomes the creation of the China-proposed Asian Infrastructure Investment Bank (AIIB), though it is viewed as a potential rival to to the Western-dominated multilateral financial institutions, an IMF spokesman in Washington told Sputnik on Wednesday.

    AIIB is a Chinese alternative to Western-founded financial institutions, such as the World Bank or IMF, and is projected to focus on Asian infrastructure investment. A number of European states have joined a growing list of founding members of the nascent AIIB, despite US concerns.

    "We welcome all initiatives that seek to strengthen the network of multilateral lending institutions and increase the available financing for infrastructure and development, including the newly created Asian Infrastructure Investment Bank," an IMF spokesman in Washington told Sputnik.

    Brazil, Russia, India, China and South Africa have been criticizing the IMF and calling for changes in the way IMF is funded and for more voting powers.

    However, the US Congress failed to pass proposed reforms in December 2014, undermining the credibility of the United States in the eyes of its allies, according to US Treasury Secretary Jacob Lew.

    Consequently, a number of US allies in Europe, including the United Kingdom, Germany, France and Italy, have joined the AIIB.

    Moreover, on Tuesday Luxembourg's Finance Ministry confirmed to Sputnik the country's bid to become a member of the AIIB.

    The bill establishing the bank was signed by 21 countries in October 2014, including Singapore, Malaysia and Kazakhstan among others. March 31 has been declared the deadline for accepting founding members to the institution.

    The stated purpose of the AIIB is to provide financing for infrastructure projects in the Asia-Pacific region.

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


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