The Asian Infrastructure Investment Bank (AIIB) is proposing to its Board of Directors the launch of a crisis recovery facility in response to the urgent economic, financial and public health pressures brought about by the COVID-19 pandemic.
The new crisis recovery facility will offer an initial $5 billion of financing to both the public and private sector entities facing serious adverse impacts as part of the coordinated international response to counter the COVID 19 crisis.
The facility is designed to be flexible and adaptive to emerging demands. It will offer dedicated financing for the next 18 months for qualifying projects within its membership. The size of the facility could be increased depending on client demand.
AIIB is also exploring how it can use its Project Preparation Special Fund to help its members, especially low-income members, whose economies are being particularly impacted by COVID-19.
AIIB’s president and chair of the board Jin Liqun said, “A well-managed and robust development institution must be nimble enough to deal with external shocks and responsive enough to adapt to the changing needs of its clients, while also adhering to our mission of promoting economic and social development in Asia.”
“The international community needs to come together to pool our resources to help the world navigate the current pandemic and economic upheaval. AIIB is committed to playing its full part,” Liqun continued.
AIIB’s president also shared that the facility could “support emergency public health needs, such as health infrastructure for emergency preparedness and clients whose infrastructure investments are severely impacted by the pandemic” as well as “provide the financing needed to preserve the productive capacity of other productive sectors, including manufacturing”.
“AIIB will do its part to rapidly respond to the financing needs of its members and clients in close partnership with other international development institutions. I believe this new facility will help our clients to overcome immediate financial pressures and maintain critical long-term investments that otherwise may not be possible,” Liqun concluded.
Re-disseminated by The Asian Banker