AIIB (Asian Infrastructure Investment Bank) news
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AIIB head fields questions from news executives
(China Daily) Updated: 2016-06-01 09:58
Jin Liqun (second from left), president of the Asian Infrastructure Investment Bank, and Zhou Li (fourth from left), editorial board member of China Daily, attend the Belt and Road Initiative and Regional Cooperation seminar with other Asian media representatives in Beijing on Tuesday. [Feng Yongbin/China Daily]
Editor's note: Jin Liqun, president of the Asian Infrastructure Investment Bank, was interviewed by media executives from the Asia News Network at the news organization's board meeting in Beijing on Tuesday.
How fast will the AIIB expand its membership?
We have 57 founding members. We have about 30 countries waiting to join, of which we have a firm commitment from about 20 countries. Some of the countries are still working on the internal procedure and can't give us a firm commitment at the moment. The deadline for application is the end of September, and we will try to complete the whole process of membership before the end of this year. So likely, by the end of this year, our membership will be a little less than 100. This is going to be a really international organization with countries from Central and Eastern Europe, Latin America, North Africa and some other regions. So we will be able to work with so many countries across the world. AIIB certainly promotes, first of all, the benefits of Asian countries, but we don't forget about those that are, by definition, not Asian countries. We support other countries that have a direct and indirect impact on Asia's development.
AIIB is considering some projects in Asia. Are all of those projects with the founding members?
We are going to deliver the first batch of projects for board consideration in late June. All the projects will be in Asian member countries and I am very happy to see, geographically, they are covering broad areas, including ASEAN countries, south Asian countries and central Asian countries. It's very gratifying to see that geographically we cover so many countries. We will have the second batch and the third batch by the end of this year. At this moment, we are considering projects with Asian member countries. I'm sure very soon we will be able to cover non-Asian countries, particularly if these countries' economic relations with Asian countries are very strong.
You've mentioned considering investing outside Asia. Very recently, Russian President Putin said he invited the AIIB to invest in Russia. Are you going to consider investing in Russian projects?
We finance infrastructure projects in any member countries that are eligible for our funding. It's very clear. But as I said, any project proposed by any government must meet our three basic requirements. So I cannot prejudge any project.
Do you see China's foreign policy complementing the objectives of the organization?
I was asked by a New York correspondent in Davos: do you think the AIIB is a success in term of diplomacy. My answer is 'Yes'. I have to add the AIIB is a success in terms of diplomacy for all 57 member countries.
What is the desirable ratio between the number of standalone projects and cofinancing projects? Are you going to provide financing to projects outside of the Chinese government's priorities, such as the Belt and Road Initiative?
I'm going to get a Japanese national to serve in a very senior position in our bank. Recently your senior officials came to see me, looking for possible cooperation. I believe we can work together to promote development in Asia. We don't have a fixed target with regard to the ratio of standalone projects vis-a-vis cofinancing. We will take in projects that meet our standards.
Probably in the future, there will clearly be a higher proportion of cofinancing projects. When it comes to huge infrastructure projects, it's easy to go over $1 billion, it's not really a great idea for one institution to single-handedly manage the finances of a project.
But also, just because we are a little bit different from the existing institutions, we do not take poverty reduction as a direct objective. Poverty reduction will be a derivative of our efforts, so our focus will be a little bit different.
Some of the projects that cannot be done by some other institutions will be perfectly all right for us to finance. So I also think we could have a clearly greater proportion of free-standing projects, particularly after we have recruited all our operational staff in the next couple of years.
When you recruit people, you really have to be more or less sure if he or she will be a good team worker, if he or she will be working very well and would achieve very high success by working at this institution.
Imagine that you were in the middle of a board meeting, and I were a board member from Thailand, and my first question to you as a CEO of the AIIB would be: Mr CEO, we seem to have a brand image problem. If we are launching a product, people may think this product is Chinese, it's not international. The No 1 question to the CEO is: how do you plan to correct this brand image?
We have heard very critical comments on China's initiative. We never, ever, engage in any vocal arguments with these people because it's not worth it. In my view, trust has to be earned. Credibility has to be earned. You cannot talk people into belief. You can exhaust all the nice words in any dictionary and you still fail to convince these people. Just forget about it. Do your job.
If we have a project to upgrade a slum in a country in the ASEAN, do you think this is a Chinese project? We cleanup the dirty water. We provide safe drinking water. We provide electricity to low-income people. When we finance a project in South Asian countries, improving the power transmission system and contributing to the reduction of global warming, do you think this is a Chinese project? None of the projects are Chinese projects. All of these projects, I would say, are benefiting the local people.
China does not want to borrow from this bank. It doesn't make sense for China to start this bank and borrow massively from this bank. India can borrow, India is No 2. China does not want to borrow ... even though China has 30 percent of the bank's shares, contributing 30 percent of the $100 billion. China will also contribute $50 billion as a donation to this bank to establish a special fund.
You may remember President Xi Jinping said that in the last three decades, China has benefited from the general support of the World Bank, the ADB and all the bilateral sources, and now it's China's turn to contribute. That is the basic idea or principle of this institution.
So our first batch of projects will speak volumes for the basic principle of this institution. With the goal of public institutions, combined with the efficiency of private sector companies, we are going to serve as a new role model. That's why we do not want to clone any existing institution. We want to be a new entity with the strong features of private sector companies and public sector companies. That is why we believe this bank is so attractive.
What is the responsibility of member countries?
First of all, I want to take issue with you when you say I pick the rosy pictures. I never pick the rosy pictures, I always pick the realistic pictures.... Certainly my picture involves lots of aspirations on what we aim to achieve. This is not my aspiration; it is the aspiration of the people of all these countries. So let's be realistic.
We cannot achieve all these objectives over a really short period of time, but I think we should always aim at all these grand programs, which would benefit all of the people of all the member countries. New members or existing members certainly will place high expectations on this bank.
They certainly try, at least for many developing countries, to get as many resources as possible from this bank. They would like to have as many projects as possible. But we cannot, I think, meet all of their expectations. We must achieve counterbalance and regional balance. Sometimes we have to decline ... because we believe some other projects are more important from the regional perspective. ... Probably, the response from other institutions would be the same. If your project does not measure up to their high standard for environmental protection they cannot do it.
What is the budget of AIIB?
I enjoyed living in the Philippines for a good five years when I served as vice-president of the Asian Development Bank. That platform gave me a lot of opportunities to communicate with people in member countries and also helped me learn more about your great country. The Philippines is a founding member, and we certainly will look forward to new opportunity to develop a strong relationship with your country.
We are early in the stages and it's not responsible for me to give you some definite figure of how much we can lend a year, but maybe I can offer you some examples. ADB has a capital base of $160 billion. Roughly, there is $16 billion for lending out in a year. The World Bank has $257 billion; their lending program is probably $25-$26 billion a year. So that kind of reference probably would help you to more or less arrive at a rough idea.
We depend on the experience of the IMF, World Bank and ADB if we want to learn more about the macroeconomic situation of the country. We don't have to duplicate the research in these areas. Instead, we can focus our resources on research in some other areas, such as renewable energy. But we don't have to duplicate the efforts of other institutions.
You see, it is truly important for us to keep in mind any country would have a need, a special, particular need. Just quote Jane Austen. If I remember correctly, "It is a truth universally acknowledged, that a single man in possession of a good fortune, must be in want of a wife." And this wife is a matter of preference.
What is the investment target of AIIB?
We start with infrastructure－physical infrastructure, to be exact. But since we have other productive sectors in mind, we can probably finance projects in the future for nonphysical infrastructure. For instance, education and healthcare are nonphysical infrastructure. Or, if we can help a municipal government better design the way it manages, I think it could be very important.
It's certainly important to build roads and streets, but people don't understand if you don't include the traffic lights, if you don't manage the flow of the people in the city, probably no matter how many roads you build, it's still not enough. So you need to better manage the urban problems. That could be part of our efforts.
Now, when it comes to new technology, I have to be cautious about financing. This is not our job. Any investment in new technology has variants. And I don't think it's appropriate to spend our shareholders' money on something with dubious prospects. This should be left for venture capital to take care of. But once the new technology proves workable and effective, we can't miss it.
So in my view, this is the way we can serve our countries. We apply new technology; we do not invest in developing new technology. This is my personal view.
How long until the United States or Japan joins the AIIB?
I cannot speak on behalf of the US government or the Japanese government with regard to the membership issues. The door has opened, and will remain open. This is our basic principle. And as we are inclusive, if any country wants to join, they pick up the phone, give us a ring and discuss the rest of the issues. You know, the conditions are all stated in the articles of agreement. But I want to highlight one point, that regardless of the membership of any country in the world, we can work together.
As I said, the companies of the United States and companies of Japan can participate in the international competition, and they will be treated equally and fairly. This is our basic principle.
I have already hired some US nationals to work in this institution, sit in various positions, and I told you that we would have some Japanese nationals. We are still in the recruitment process, interviews. I am sure the Japanese nationals will meet our standards. We are indeed very happy to have any national of any country who can serve this institution. So I highlight this point again and again, that regardless of who is a member, there are various ways that we work for the companies and work for the nationals.
When you describe reforming distribution, what do you feel was lacking in the decision-making and distribution at IMF, ADB or the World Bank, or whether their decisions were politically motivated, and did that prompt you to advance this idea?
I think we can evaluate the performance or contribution of any international institution only from a historical perspective. The Bretton Woods institutions were created before the conclusion of the World War II. So it was timely for all these countries to meet in Bretton Woods, New Hampshire. China was also a member. All the last seven days, the Bretton Woods institutions, and the new institutions that were created more or less patterned on these institutions, have contributed enormously to international financial or economic stability, to reconstruction and the readoption of recruitment.
No institution, just like no individual, is perfect. So when we talk about the international financial order, or international economic order, you may have noticed the Chinese position, that we do not intend to upend the existing international financial order because we in China have also benefited from this system, particularly over the last three decades.
Now, I understand these institutions are also trying to improve, to undertake reforms, to make them serve better.
We were all created in the 21st century, meeting the needs of countries from the 21st century, so we have a lot to learn from the existing institutions, and we also enjoy the advantages of the institutions of different cultures. And any institution will make mistakes. I do not think we will be flawless in the future.
I think what is important is, first of all, to understand the reality and acknowledge or confess that you made mistakes－and that you will have the guts to confess and to correct. No mistake is a mistake unless you don't want to take it back. So I think this is very very important for understanding.
It is not appropriate for me to make judgments on the merits or demerits of existing institutions. My job is to learn from the strong points. And I would say this is the shared view of all 57 members of the institution, because they are all members of existing institutions, right? So when some people asked me, 'Aren't you worried about rivalry with the World Bank or ADB?,' I told them that I worked for six years on the board of the World Bank, five years in management. If you think the sibling, the new institution, has sold out the existing institution, I would not agree.
What is lacking in the practices of existing institutions?
It's not appropriate for me to comment on the merits or demerits. But one essential fact is that the existing institutions mostly are made of the developed nations. This institution is made by developing nations, so we can offer the development experience of developing countries that has accumulated over the last half-century, particularly the last three decades.
Will the Chinese government ask the AIIB to finance all its infrastructure projects?
The United States basically shuffled the order of the World Bank. Japan has numerous financial assistance programs. Many European countries also have their own financing systems. So the way they handle this is also offering some experience.
If I have to be specific about the relationship between AIIB and Chinese financial systems, I do not rule out the possibility that we can work together if they follow our standards and rules. For instance we have Chinese development institutions, and they may finance ideas or infrastructure in some countries.
(China Daily) Updated: 2016-06-01 09:58
Jin Liqun (second from left), president of the Asian Infrastructure Investment Bank, and Zhou Li (fourth from left), editorial board member of China Daily, attend the Belt and Road Initiative and Regional Cooperation seminar with other Asian media representatives in Beijing on Tuesday. [Feng Yongbin/China Daily]
Editor's note: Jin Liqun, president of the Asian Infrastructure Investment Bank, was interviewed by media executives from the Asia News Network at the news organization's board meeting in Beijing on Tuesday.
How fast will the AIIB expand its membership?
We have 57 founding members. We have about 30 countries waiting to join, of which we have a firm commitment from about 20 countries. Some of the countries are still working on the internal procedure and can't give us a firm commitment at the moment. The deadline for application is the end of September, and we will try to complete the whole process of membership before the end of this year. So likely, by the end of this year, our membership will be a little less than 100. This is going to be a really international organization with countries from Central and Eastern Europe, Latin America, North Africa and some other regions. So we will be able to work with so many countries across the world. AIIB certainly promotes, first of all, the benefits of Asian countries, but we don't forget about those that are, by definition, not Asian countries. We support other countries that have a direct and indirect impact on Asia's development.
AIIB is considering some projects in Asia. Are all of those projects with the founding members?
We are going to deliver the first batch of projects for board consideration in late June. All the projects will be in Asian member countries and I am very happy to see, geographically, they are covering broad areas, including ASEAN countries, south Asian countries and central Asian countries. It's very gratifying to see that geographically we cover so many countries. We will have the second batch and the third batch by the end of this year. At this moment, we are considering projects with Asian member countries. I'm sure very soon we will be able to cover non-Asian countries, particularly if these countries' economic relations with Asian countries are very strong.
You've mentioned considering investing outside Asia. Very recently, Russian President Putin said he invited the AIIB to invest in Russia. Are you going to consider investing in Russian projects?
We finance infrastructure projects in any member countries that are eligible for our funding. It's very clear. But as I said, any project proposed by any government must meet our three basic requirements. So I cannot prejudge any project.
Do you see China's foreign policy complementing the objectives of the organization?
I was asked by a New York correspondent in Davos: do you think the AIIB is a success in term of diplomacy. My answer is 'Yes'. I have to add the AIIB is a success in terms of diplomacy for all 57 member countries.
What is the desirable ratio between the number of standalone projects and cofinancing projects? Are you going to provide financing to projects outside of the Chinese government's priorities, such as the Belt and Road Initiative?
I'm going to get a Japanese national to serve in a very senior position in our bank. Recently your senior officials came to see me, looking for possible cooperation. I believe we can work together to promote development in Asia. We don't have a fixed target with regard to the ratio of standalone projects vis-a-vis cofinancing. We will take in projects that meet our standards.
Probably in the future, there will clearly be a higher proportion of cofinancing projects. When it comes to huge infrastructure projects, it's easy to go over $1 billion, it's not really a great idea for one institution to single-handedly manage the finances of a project.
But also, just because we are a little bit different from the existing institutions, we do not take poverty reduction as a direct objective. Poverty reduction will be a derivative of our efforts, so our focus will be a little bit different.
Some of the projects that cannot be done by some other institutions will be perfectly all right for us to finance. So I also think we could have a clearly greater proportion of free-standing projects, particularly after we have recruited all our operational staff in the next couple of years.
When you recruit people, you really have to be more or less sure if he or she will be a good team worker, if he or she will be working very well and would achieve very high success by working at this institution.
Imagine that you were in the middle of a board meeting, and I were a board member from Thailand, and my first question to you as a CEO of the AIIB would be: Mr CEO, we seem to have a brand image problem. If we are launching a product, people may think this product is Chinese, it's not international. The No 1 question to the CEO is: how do you plan to correct this brand image?
We have heard very critical comments on China's initiative. We never, ever, engage in any vocal arguments with these people because it's not worth it. In my view, trust has to be earned. Credibility has to be earned. You cannot talk people into belief. You can exhaust all the nice words in any dictionary and you still fail to convince these people. Just forget about it. Do your job.
If we have a project to upgrade a slum in a country in the ASEAN, do you think this is a Chinese project? We cleanup the dirty water. We provide safe drinking water. We provide electricity to low-income people. When we finance a project in South Asian countries, improving the power transmission system and contributing to the reduction of global warming, do you think this is a Chinese project? None of the projects are Chinese projects. All of these projects, I would say, are benefiting the local people.
China does not want to borrow from this bank. It doesn't make sense for China to start this bank and borrow massively from this bank. India can borrow, India is No 2. China does not want to borrow ... even though China has 30 percent of the bank's shares, contributing 30 percent of the $100 billion. China will also contribute $50 billion as a donation to this bank to establish a special fund.
You may remember President Xi Jinping said that in the last three decades, China has benefited from the general support of the World Bank, the ADB and all the bilateral sources, and now it's China's turn to contribute. That is the basic idea or principle of this institution.
So our first batch of projects will speak volumes for the basic principle of this institution. With the goal of public institutions, combined with the efficiency of private sector companies, we are going to serve as a new role model. That's why we do not want to clone any existing institution. We want to be a new entity with the strong features of private sector companies and public sector companies. That is why we believe this bank is so attractive.
What is the responsibility of member countries?
First of all, I want to take issue with you when you say I pick the rosy pictures. I never pick the rosy pictures, I always pick the realistic pictures.... Certainly my picture involves lots of aspirations on what we aim to achieve. This is not my aspiration; it is the aspiration of the people of all these countries. So let's be realistic.
We cannot achieve all these objectives over a really short period of time, but I think we should always aim at all these grand programs, which would benefit all of the people of all the member countries. New members or existing members certainly will place high expectations on this bank.
They certainly try, at least for many developing countries, to get as many resources as possible from this bank. They would like to have as many projects as possible. But we cannot, I think, meet all of their expectations. We must achieve counterbalance and regional balance. Sometimes we have to decline ... because we believe some other projects are more important from the regional perspective. ... Probably, the response from other institutions would be the same. If your project does not measure up to their high standard for environmental protection they cannot do it.
What is the budget of AIIB?
I enjoyed living in the Philippines for a good five years when I served as vice-president of the Asian Development Bank. That platform gave me a lot of opportunities to communicate with people in member countries and also helped me learn more about your great country. The Philippines is a founding member, and we certainly will look forward to new opportunity to develop a strong relationship with your country.
We are early in the stages and it's not responsible for me to give you some definite figure of how much we can lend a year, but maybe I can offer you some examples. ADB has a capital base of $160 billion. Roughly, there is $16 billion for lending out in a year. The World Bank has $257 billion; their lending program is probably $25-$26 billion a year. So that kind of reference probably would help you to more or less arrive at a rough idea.
We depend on the experience of the IMF, World Bank and ADB if we want to learn more about the macroeconomic situation of the country. We don't have to duplicate the research in these areas. Instead, we can focus our resources on research in some other areas, such as renewable energy. But we don't have to duplicate the efforts of other institutions.
You see, it is truly important for us to keep in mind any country would have a need, a special, particular need. Just quote Jane Austen. If I remember correctly, "It is a truth universally acknowledged, that a single man in possession of a good fortune, must be in want of a wife." And this wife is a matter of preference.
What is the investment target of AIIB?
We start with infrastructure－physical infrastructure, to be exact. But since we have other productive sectors in mind, we can probably finance projects in the future for nonphysical infrastructure. For instance, education and healthcare are nonphysical infrastructure. Or, if we can help a municipal government better design the way it manages, I think it could be very important.
It's certainly important to build roads and streets, but people don't understand if you don't include the traffic lights, if you don't manage the flow of the people in the city, probably no matter how many roads you build, it's still not enough. So you need to better manage the urban problems. That could be part of our efforts.
Now, when it comes to new technology, I have to be cautious about financing. This is not our job. Any investment in new technology has variants. And I don't think it's appropriate to spend our shareholders' money on something with dubious prospects. This should be left for venture capital to take care of. But once the new technology proves workable and effective, we can't miss it.
So in my view, this is the way we can serve our countries. We apply new technology; we do not invest in developing new technology. This is my personal view.
How long until the United States or Japan joins the AIIB?
I cannot speak on behalf of the US government or the Japanese government with regard to the membership issues. The door has opened, and will remain open. This is our basic principle. And as we are inclusive, if any country wants to join, they pick up the phone, give us a ring and discuss the rest of the issues. You know, the conditions are all stated in the articles of agreement. But I want to highlight one point, that regardless of the membership of any country in the world, we can work together.
As I said, the companies of the United States and companies of Japan can participate in the international competition, and they will be treated equally and fairly. This is our basic principle.
I have already hired some US nationals to work in this institution, sit in various positions, and I told you that we would have some Japanese nationals. We are still in the recruitment process, interviews. I am sure the Japanese nationals will meet our standards. We are indeed very happy to have any national of any country who can serve this institution. So I highlight this point again and again, that regardless of who is a member, there are various ways that we work for the companies and work for the nationals.
When you describe reforming distribution, what do you feel was lacking in the decision-making and distribution at IMF, ADB or the World Bank, or whether their decisions were politically motivated, and did that prompt you to advance this idea?
I think we can evaluate the performance or contribution of any international institution only from a historical perspective. The Bretton Woods institutions were created before the conclusion of the World War II. So it was timely for all these countries to meet in Bretton Woods, New Hampshire. China was also a member. All the last seven days, the Bretton Woods institutions, and the new institutions that were created more or less patterned on these institutions, have contributed enormously to international financial or economic stability, to reconstruction and the readoption of recruitment.
No institution, just like no individual, is perfect. So when we talk about the international financial order, or international economic order, you may have noticed the Chinese position, that we do not intend to upend the existing international financial order because we in China have also benefited from this system, particularly over the last three decades.
Now, I understand these institutions are also trying to improve, to undertake reforms, to make them serve better.
We were all created in the 21st century, meeting the needs of countries from the 21st century, so we have a lot to learn from the existing institutions, and we also enjoy the advantages of the institutions of different cultures. And any institution will make mistakes. I do not think we will be flawless in the future.
I think what is important is, first of all, to understand the reality and acknowledge or confess that you made mistakes－and that you will have the guts to confess and to correct. No mistake is a mistake unless you don't want to take it back. So I think this is very very important for understanding.
It is not appropriate for me to make judgments on the merits or demerits of existing institutions. My job is to learn from the strong points. And I would say this is the shared view of all 57 members of the institution, because they are all members of existing institutions, right? So when some people asked me, 'Aren't you worried about rivalry with the World Bank or ADB?,' I told them that I worked for six years on the board of the World Bank, five years in management. If you think the sibling, the new institution, has sold out the existing institution, I would not agree.
What is lacking in the practices of existing institutions?
It's not appropriate for me to comment on the merits or demerits. But one essential fact is that the existing institutions mostly are made of the developed nations. This institution is made by developing nations, so we can offer the development experience of developing countries that has accumulated over the last half-century, particularly the last three decades.
Will the Chinese government ask the AIIB to finance all its infrastructure projects?
The United States basically shuffled the order of the World Bank. Japan has numerous financial assistance programs. Many European countries also have their own financing systems. So the way they handle this is also offering some experience.
If I have to be specific about the relationship between AIIB and Chinese financial systems, I do not rule out the possibility that we can work together if they follow our standards and rules. For instance we have Chinese development institutions, and they may finance ideas or infrastructure in some countries.
ahojunk
RETIRED INTL MOD
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From a Thai newspaper....
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A revealing encounter with AIIB president Jin Liqun
Suthichai Yoon
The Nation June 16, 2016 1:00 am
Anyone who asks the president of the Asian Infrastructure Investment Bank (AIIB) if his new international financial institution is in fact part of China’s expanding diplomacy had better be prepared for a prolonged exchange. Jin Liqun doesn’t bother with the stonewalling tactics typically used by senior Chinese officials when confronted with a controversial question.
The 67-year-old former vice minister of finance - and ex-vice president of the World Bank and Asian Development Bank - gave a lively presentation to senior editors from the Asia News Network (ANN) at China Daily's offices recently. The question-and-answer session that followed was a robust exchange of the kind Chinese officials rarely tolerate.
The China-initiated AIIB now has 57 founding members, which would rise to 100 by the end of the year, said Jin, when the first batch of infrastructure projects will be announced. The United States and Japan have so far shunned entry, but "the door has been open and will remain open", said the president.
But the question on many lips is, how can the bank erase its image of being a diplomatic tool of Beijing?
As CEO, how would he respond to questions from board members about this "brand image" when the bank launches its "products"?
Jin, who is fluent in English and French and has a life-long love of Shakespeare, paraphrased English author Jane Austen to hit back at scepticism over China's motivation for creating the bank:
"Scepticism must always be forgiven, you know, because there is no hope of a cure," he said, replacing "selfishness" in the original quote with "scepticism".
Sceptics must be forgiven, of course, because the doubts and suspicion have not emerged out of nowhere. The hype and symbolism have not gone unnoticed.
As well as being the initiator, China is the biggest single shareholder in the bank, with 30 per cent of the $100,000 billion registered capital. (Thailand has a 1.45-per-cent stake.)
Jin, as the first president, is a Chinese Communist Party member. The bank's offices are located in China: For now, operations are being carried out in a nondescript office tower in Beijing's financial district, with plans to build permanent headquarters in the Olympic Park near the Bird's Nest stadium.
"We will soon appoint a Japanese national in a senior position in the bank," Jin declared, by way of confirming his earlier statement that the AIIB would earn international trust and credibility through its good governance. To qualify for screening by the bank, projects must be "financially sustainable, environmentally friendly and socially acceptable".
The AIIB wouldn't do anything that was driven by politics and would not interfere in political affairs, he insisted.
Although Jin gave a long introductory brief on China's much-hyped "One Belt, One Road" initiative, the president confirmed that Beijing would not borrow from the bank.
"It doesn't make sense for China to start this bank and borrow massively from his bank. India can borrow. India is No 2. China doesn't want to borrow, even though China has 30 per cent of the bank's shares and will also contribute $50 billion as a donation to the bank to establish a special fund," he said.
Sceptics also suggest that the AIIB was designed by China to counter the World Bank, which is dominated by the US and Europe, and the Asian Development Bank (ADB), long under Japan's shadow. But Jin rejected that perception, as well.
The AIIB was not trying to upend the international financial and economic order, he insisted, even though that order has much room for improvement. He cited Chinese President Xi Jinping's statement that China had already benefited from the general support of the World Bank, the ADB and other bilateral sources. "And now it's China's turn to contribute. That is the basic idea or principle of this institution," he added.
But surely there would be no need for a new multilateral financial institution like the AIIB if the World Bank and ADB were already doing a good job. What are their deficiencies?
If the usually jocular Jin felt cornered by that question, he didn't show it. "It's not appropriate for me to make judgements on the merits or demerits of existing institutions. My job is to learn from the strong points."
He admitted to having received an even more direct question in this regard: Wasn't he worried about rivalry from the World Bank and the ADB?
His answer was equally diplomatic and matter-of-fact: "I worked for six years on the board of the World Bank, five years in management. If you think the sibling, the new institution, has sold out the existing institution, I would not agree."
The encounter left many Asian journalists present convinced that Jin Liqun is a banker, a diplomat and a technocrat all rolled into one. According to the Financial Times, Western diplomats have dubbed him Beijing's "chief barbarian handler", meaning his job is to deal with foreigners.
Jin finds the term offensive. "I take exception and issue with this description," he told the FT's Asia editor Jamil Anderlini recently. "I'm not dealing with barbarians, I'm dealing with people in modern civilisations."
Jin Liqun certainly lived up to that standard during our hour-long exchange.
--------
A revealing encounter with AIIB president Jin Liqun
Suthichai Yoon
The Nation June 16, 2016 1:00 am
Anyone who asks the president of the Asian Infrastructure Investment Bank (AIIB) if his new international financial institution is in fact part of China’s expanding diplomacy had better be prepared for a prolonged exchange. Jin Liqun doesn’t bother with the stonewalling tactics typically used by senior Chinese officials when confronted with a controversial question.
The 67-year-old former vice minister of finance - and ex-vice president of the World Bank and Asian Development Bank - gave a lively presentation to senior editors from the Asia News Network (ANN) at China Daily's offices recently. The question-and-answer session that followed was a robust exchange of the kind Chinese officials rarely tolerate.
The China-initiated AIIB now has 57 founding members, which would rise to 100 by the end of the year, said Jin, when the first batch of infrastructure projects will be announced. The United States and Japan have so far shunned entry, but "the door has been open and will remain open", said the president.
But the question on many lips is, how can the bank erase its image of being a diplomatic tool of Beijing?
As CEO, how would he respond to questions from board members about this "brand image" when the bank launches its "products"?
Jin, who is fluent in English and French and has a life-long love of Shakespeare, paraphrased English author Jane Austen to hit back at scepticism over China's motivation for creating the bank:
"Scepticism must always be forgiven, you know, because there is no hope of a cure," he said, replacing "selfishness" in the original quote with "scepticism".
Sceptics must be forgiven, of course, because the doubts and suspicion have not emerged out of nowhere. The hype and symbolism have not gone unnoticed.
As well as being the initiator, China is the biggest single shareholder in the bank, with 30 per cent of the $100,000 billion registered capital. (Thailand has a 1.45-per-cent stake.)
Jin, as the first president, is a Chinese Communist Party member. The bank's offices are located in China: For now, operations are being carried out in a nondescript office tower in Beijing's financial district, with plans to build permanent headquarters in the Olympic Park near the Bird's Nest stadium.
"We will soon appoint a Japanese national in a senior position in the bank," Jin declared, by way of confirming his earlier statement that the AIIB would earn international trust and credibility through its good governance. To qualify for screening by the bank, projects must be "financially sustainable, environmentally friendly and socially acceptable".
The AIIB wouldn't do anything that was driven by politics and would not interfere in political affairs, he insisted.
Although Jin gave a long introductory brief on China's much-hyped "One Belt, One Road" initiative, the president confirmed that Beijing would not borrow from the bank.
"It doesn't make sense for China to start this bank and borrow massively from his bank. India can borrow. India is No 2. China doesn't want to borrow, even though China has 30 per cent of the bank's shares and will also contribute $50 billion as a donation to the bank to establish a special fund," he said.
Sceptics also suggest that the AIIB was designed by China to counter the World Bank, which is dominated by the US and Europe, and the Asian Development Bank (ADB), long under Japan's shadow. But Jin rejected that perception, as well.
The AIIB was not trying to upend the international financial and economic order, he insisted, even though that order has much room for improvement. He cited Chinese President Xi Jinping's statement that China had already benefited from the general support of the World Bank, the ADB and other bilateral sources. "And now it's China's turn to contribute. That is the basic idea or principle of this institution," he added.
But surely there would be no need for a new multilateral financial institution like the AIIB if the World Bank and ADB were already doing a good job. What are their deficiencies?
If the usually jocular Jin felt cornered by that question, he didn't show it. "It's not appropriate for me to make judgements on the merits or demerits of existing institutions. My job is to learn from the strong points."
He admitted to having received an even more direct question in this regard: Wasn't he worried about rivalry from the World Bank and the ADB?
His answer was equally diplomatic and matter-of-fact: "I worked for six years on the board of the World Bank, five years in management. If you think the sibling, the new institution, has sold out the existing institution, I would not agree."
The encounter left many Asian journalists present convinced that Jin Liqun is a banker, a diplomat and a technocrat all rolled into one. According to the Financial Times, Western diplomats have dubbed him Beijing's "chief barbarian handler", meaning his job is to deal with foreigners.
Jin finds the term offensive. "I take exception and issue with this description," he told the FT's Asia editor Jamil Anderlini recently. "I'm not dealing with barbarians, I'm dealing with people in modern civilisations."
Jin Liqun certainly lived up to that standard during our hour-long exchange.
ahojunk
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An opinion piece by a Canadian businesswoman...
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Canada should join China-led bank, AIIB
06-13-2016 11:16 BJT
By Christina Kitova, associate partner Hodges Media Communications, based in Markham Ontario Canada
The Asian Infrastructure Investment Bank (AIIB) was established on December 25, 2015. The agreement was signed by representatives from 21 different Asian nations. Presently, there are 60 nation members of the AIIB, hailing from all over the world. The bank will finance projects, such as loans to finance infrastructure in the more impoverished regions of Asia.
The creation of the AIIB also gives China greater influence in regard to the International Monetary Fund (IMF). The AIIB offers a strong presence that will encourage multilateral organizations to act more green, efficient and effective, providing a competitive angle that demonstrates AIIB's advantages.
The AIIB offers secure assets to institutional investors, such as issuing long-dated bonds that will provide a measurable return on funding infrastructure.
China-led bank will expand its influence, making it advantageous decision for Canada to join in, since it will provide opportunities for Canada to be a stand alone nation without being overly-influenced by the U.S. and Japan.
A rebalancing of the global economy has been underway, which offers a great opportunity for Canada to embark on a more diversified portfolio as the nation seeks more trade partnerships with China on the federal and provincial levels.
The Premier of Ontario Kathleen Wynne has explained that the AIIB could generate much needed revenue for Ontario and create symbiotic business partnerships.
On the federal level, trade with China is estimated at $170 billion (CD) per year. China also holds over $4 trillion (USD) in foreign reserves. The Chinese currency, yuan is Canada's second most common financial trade currency.
Thus far Britain, Germany, France and Italy have already joined the venture recognizing its benefits. The European G7 membership does trust the stability of China’s economy. It makes logical sense as China is rallying to have the new world reserve currency.
There's greater demand for the Chinese yuan with a drive to have yuan included within the International Monetary Fund's Special Drawing Rights, which will officially start later this year.
The trade in yuan has risen from being a marginal 1% to its present 25% trade standing within the last two years and it is projected to accelerate further. There have been clearing centers set up offshore around the world. Russia, United Kingdom and Australia have already signed currency swap agreements.
BRICS (Brazil, Russia, India，China and South Africa) bank is also working with the AIIB on future projects. Canada joining the AIIB can provide better trading opportunities, as well as trade with BRICS countries. The World Bank has expressed an interest in working with the AIIB to eradicate poverty.
AIIB benefits fill the need for more development and the differentiation is what the World Bank specializes in to provide support for developing countries. The AIIB can spur stronger development of infrastructure in Asia, including the One Belt One Road initiative.
The policy would play a vital road for global trade development. The opportunities for Canada are endless, while also providing trade opportunities with other Asian nations and Russia, since the AIIB could transform economies across Asia that create more business opportunities and to diversify trade portfolios for multiple investing nations.
The upgrade of free market trade could ease the transport of goods through borders by sea as well as across land, expanding export and import and efficiency.
Canada stands only to gain by joining the AIIB as it has a positive effect upon its economy. It's the right move for Canada to join the AIIB, despite opposition from Washington.
Christina Kitova, associate partner Hodges Media Communications, based in Markham Ontario Canada
(The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com.)
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Canada should join China-led bank, AIIB
06-13-2016 11:16 BJT
By Christina Kitova, associate partner Hodges Media Communications, based in Markham Ontario Canada
The Asian Infrastructure Investment Bank (AIIB) was established on December 25, 2015. The agreement was signed by representatives from 21 different Asian nations. Presently, there are 60 nation members of the AIIB, hailing from all over the world. The bank will finance projects, such as loans to finance infrastructure in the more impoverished regions of Asia.
The creation of the AIIB also gives China greater influence in regard to the International Monetary Fund (IMF). The AIIB offers a strong presence that will encourage multilateral organizations to act more green, efficient and effective, providing a competitive angle that demonstrates AIIB's advantages.
The AIIB offers secure assets to institutional investors, such as issuing long-dated bonds that will provide a measurable return on funding infrastructure.
China-led bank will expand its influence, making it advantageous decision for Canada to join in, since it will provide opportunities for Canada to be a stand alone nation without being overly-influenced by the U.S. and Japan.
A rebalancing of the global economy has been underway, which offers a great opportunity for Canada to embark on a more diversified portfolio as the nation seeks more trade partnerships with China on the federal and provincial levels.
The Premier of Ontario Kathleen Wynne has explained that the AIIB could generate much needed revenue for Ontario and create symbiotic business partnerships.
On the federal level, trade with China is estimated at $170 billion (CD) per year. China also holds over $4 trillion (USD) in foreign reserves. The Chinese currency, yuan is Canada's second most common financial trade currency.
Thus far Britain, Germany, France and Italy have already joined the venture recognizing its benefits. The European G7 membership does trust the stability of China’s economy. It makes logical sense as China is rallying to have the new world reserve currency.
There's greater demand for the Chinese yuan with a drive to have yuan included within the International Monetary Fund's Special Drawing Rights, which will officially start later this year.
The trade in yuan has risen from being a marginal 1% to its present 25% trade standing within the last two years and it is projected to accelerate further. There have been clearing centers set up offshore around the world. Russia, United Kingdom and Australia have already signed currency swap agreements.
BRICS (Brazil, Russia, India，China and South Africa) bank is also working with the AIIB on future projects. Canada joining the AIIB can provide better trading opportunities, as well as trade with BRICS countries. The World Bank has expressed an interest in working with the AIIB to eradicate poverty.
AIIB benefits fill the need for more development and the differentiation is what the World Bank specializes in to provide support for developing countries. The AIIB can spur stronger development of infrastructure in Asia, including the One Belt One Road initiative.
The policy would play a vital road for global trade development. The opportunities for Canada are endless, while also providing trade opportunities with other Asian nations and Russia, since the AIIB could transform economies across Asia that create more business opportunities and to diversify trade portfolios for multiple investing nations.
The upgrade of free market trade could ease the transport of goods through borders by sea as well as across land, expanding export and import and efficiency.
Canada stands only to gain by joining the AIIB as it has a positive effect upon its economy. It's the right move for Canada to join the AIIB, despite opposition from Washington.
Christina Kitova, associate partner Hodges Media Communications, based in Markham Ontario Canada
(The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com.)
TaiShang
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As opposed to US fear-mongering, the AIIB is not undermining global governance, rather, improving it by correcting the faults in the existing US-led economic regimes.
ahojunk
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AIIB is hiring qualified staff irrespective of where they are from, not necessarily Asia.....
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AIIB names senior staffers
15-06-16
The Asian Infrastructure Investment Bank (AIIB) has added two more experienced players from the development banking world as it continues to fill its senior ranks.
Gerard Sanders will join in August as general counsel, reporting to president Jin Liqun.
New Zealander Sanders joins from the International Fund for Agricultural Development (IFAD), a UN organisation. He previously spent 20 years at the European Bank for Reconstruction and Development (EBRD), most recently as deputy general counsel.
Thierry de Longuemar, meanwhile, has been named chief financial officer, also reporting to Jin.
The Frenchman has worked as a vice-president at the Asian Development Bank (ADB) for five years, covering finance, administration and risk management. He has 30 years of financial sector experience, including spells at the African Development Bank and ABN Amro.
Jin says: “I am delighted to announce appointments to these important leadership positions. Both Mr Gerard Sanders and Mr Thierry de Longuemar bring with them decades of highly relevant experience that will serve the bank well in the years ahead. I look forward to working with them both when they take up their positions at the bank in the coming months.”
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AIIB names senior staffers
15-06-16
The Asian Infrastructure Investment Bank (AIIB) has added two more experienced players from the development banking world as it continues to fill its senior ranks.
Gerard Sanders will join in August as general counsel, reporting to president Jin Liqun.
New Zealander Sanders joins from the International Fund for Agricultural Development (IFAD), a UN organisation. He previously spent 20 years at the European Bank for Reconstruction and Development (EBRD), most recently as deputy general counsel.
Thierry de Longuemar, meanwhile, has been named chief financial officer, also reporting to Jin.
The Frenchman has worked as a vice-president at the Asian Development Bank (ADB) for five years, covering finance, administration and risk management. He has 30 years of financial sector experience, including spells at the African Development Bank and ABN Amro.
Jin says: “I am delighted to announce appointments to these important leadership positions. Both Mr Gerard Sanders and Mr Thierry de Longuemar bring with them decades of highly relevant experience that will serve the bank well in the years ahead. I look forward to working with them both when they take up their positions at the bank in the coming months.”
TaiShang
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AIIB approves $500 mln for first four projects
CRI, June 25, 2016
The Asian Infrastructure Investment Bank has approved a 165 million US dollar loan for a project in Bangladesh.
It's part of the first batch of loans issued from the China-led development bank.
Photo taken on January 17, 2016 shows the stone monument in front of the headquarters building of the Asian Infrastructure Investment Bank (AIIB) in downtown Beijing, capital of China. [Photo: Xinhua]
The AIIB's Board of Directors has approved 4 loans totaling just over 500-million US dollars to finance 4 separate projects.
AIIB President Jin Liqun says the projects, which cover the fields of energy, urban development and transport, are going to help strengthen regional connectivity.
The Asian Infrastructure Investment Bank, which became operational earlier this year, has a target of lending around 1.2-billion US dollars this year.
It's currently reviewing dozens of different projects put forward by various countries throughout Asia.
CRI, June 25, 2016
The Asian Infrastructure Investment Bank has approved a 165 million US dollar loan for a project in Bangladesh.
It's part of the first batch of loans issued from the China-led development bank.
Photo taken on January 17, 2016 shows the stone monument in front of the headquarters building of the Asian Infrastructure Investment Bank (AIIB) in downtown Beijing, capital of China. [Photo: Xinhua]
The AIIB's Board of Directors has approved 4 loans totaling just over 500-million US dollars to finance 4 separate projects.
AIIB President Jin Liqun says the projects, which cover the fields of energy, urban development and transport, are going to help strengthen regional connectivity.
The Asian Infrastructure Investment Bank, which became operational earlier this year, has a target of lending around 1.2-billion US dollars this year.
It's currently reviewing dozens of different projects put forward by various countries throughout Asia.
ahojunk
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Brexit, what a mess...
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China-led AIIB ready to help soothe Brexit stresses
PUBLISHED : Saturday, 25 June, 2016, 8:03pm
UPDATED : Sunday, 26 June, 2016, 12:25am
The China-led Asian Infrastructure Investment Bank can join forces with its international peers to help smooth out any volatility and uncertainties following Britain’s decision to leave the European Union, a top official said on Saturday.
Yoo Il-ho, South Korea’s Finance Minister and a member of AIIB’s board of governors, said at the opening ceremony of the first annual meeting of the board of governors in Beijing on Saturday that financial markets had reacted “with shock” to Britain’s decision.
“It is a blow to those who believe in global integration” and “the global financial market is facing greater uncertainty and volatility”, Yoo said. But the bank “can help with the new situation”, he said.
Zhou Xiaochuan, governor of the People’s Bank of China, said on Friday at the International Monetary Fund in Washington: “This is a quite a critical time point because all economists and financial sectors are paying attention to the Brexit, so you need a lot of study, and also global cooperation to deal with the potential impact.”
“The People’s Bank of China has been closely monitoring the development of Britain’s referendum and trying our best to have a good preparation,” he said, speaking in English.
“We especially emphasised enhancing the coordination…with the International Monetary Fund and relevant central banks and other authorities, to safeguard the financial market stability and global economy.”
Separately, AIIB president Jin Liqun said Britain’s decision would not affect its status as a member of the bank.
A senior executive of another multinational development bank at the meeting told the Sunday Morning Post that Brexit had become a hot topic.
“Everyone is discussing Brexit here. It will have long-term impact on the overall financing system,” the executive said.
Vice-Premier Zhang Gaoli also called on the lender to form closer partnerships with existing multinational development banks, such as the World Bank and Asian Development Bank. But Yoo said the AIIB needed to improve its organisation and refine polices if it wanted to seek such closer ties.
“The roles of management and the board should be more clearly defined based on the bank’s Articles of Agreement,” Yoo said.
The bank needed to demonstrate best practice and “put in place a strong operating platform and policies governing the institution”, he said.
Finance Minister Lou Jiwei, who is chairman of AIIB’s board of governors, said the bank would start procedures to accept new members soon after the annual meeting, and he hoped that they would be able to officially join early next year.
So far there are 24 potential applicants to join the bank’s existing 57 members, including Hong Kong and Canada.
The AIIB also announced that its board of directors on Friday had approved its first four funding projects, worth a total of US$509 million, in power, transport and urban investment in Bangladesh, Indonesia, Pakistan and Tajikistan.
Three of the projects are to be jointly funded by other multilateral development banks – the World Bank, Asian Development Bank and the European Bank for Reconstruction and Development.
AIIB will take the lead only in the Bangladesh project to upgrade a power distribution system with a loan of US$165 million.
Jin said the bank aimed to “play the role of a catalyst” to mobilise private financing to ease spending pressure of the sovereign governments in infrastructure development.
He said the directors had also approved a special fund to support members with project preparations. The fund will start its operations this autumn, with China as the first donor of US$50 million.
“Our financial position is robust and will be increasingly stronger,” Jin said.
“We expect to bring additional projects to the board in the second half of the year and are working on the pipeline for 2017,” he said in his report to the board after the opening ceremony.
The bank is targeting a total of US$1.2 billion of infrastructure projects this year.
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China-led AIIB ready to help soothe Brexit stresses
PUBLISHED : Saturday, 25 June, 2016, 8:03pm
UPDATED : Sunday, 26 June, 2016, 12:25am
The China-led Asian Infrastructure Investment Bank can join forces with its international peers to help smooth out any volatility and uncertainties following Britain’s decision to leave the European Union, a top official said on Saturday.
Yoo Il-ho, South Korea’s Finance Minister and a member of AIIB’s board of governors, said at the opening ceremony of the first annual meeting of the board of governors in Beijing on Saturday that financial markets had reacted “with shock” to Britain’s decision.
“It is a blow to those who believe in global integration” and “the global financial market is facing greater uncertainty and volatility”, Yoo said. But the bank “can help with the new situation”, he said.
Zhou Xiaochuan, governor of the People’s Bank of China, said on Friday at the International Monetary Fund in Washington: “This is a quite a critical time point because all economists and financial sectors are paying attention to the Brexit, so you need a lot of study, and also global cooperation to deal with the potential impact.”
“The People’s Bank of China has been closely monitoring the development of Britain’s referendum and trying our best to have a good preparation,” he said, speaking in English.
“We especially emphasised enhancing the coordination…with the International Monetary Fund and relevant central banks and other authorities, to safeguard the financial market stability and global economy.”
Separately, AIIB president Jin Liqun said Britain’s decision would not affect its status as a member of the bank.
A senior executive of another multinational development bank at the meeting told the Sunday Morning Post that Brexit had become a hot topic.
“Everyone is discussing Brexit here. It will have long-term impact on the overall financing system,” the executive said.
Vice-Premier Zhang Gaoli also called on the lender to form closer partnerships with existing multinational development banks, such as the World Bank and Asian Development Bank. But Yoo said the AIIB needed to improve its organisation and refine polices if it wanted to seek such closer ties.
“The roles of management and the board should be more clearly defined based on the bank’s Articles of Agreement,” Yoo said.
The bank needed to demonstrate best practice and “put in place a strong operating platform and policies governing the institution”, he said.
Finance Minister Lou Jiwei, who is chairman of AIIB’s board of governors, said the bank would start procedures to accept new members soon after the annual meeting, and he hoped that they would be able to officially join early next year.
So far there are 24 potential applicants to join the bank’s existing 57 members, including Hong Kong and Canada.
The AIIB also announced that its board of directors on Friday had approved its first four funding projects, worth a total of US$509 million, in power, transport and urban investment in Bangladesh, Indonesia, Pakistan and Tajikistan.
Three of the projects are to be jointly funded by other multilateral development banks – the World Bank, Asian Development Bank and the European Bank for Reconstruction and Development.
AIIB will take the lead only in the Bangladesh project to upgrade a power distribution system with a loan of US$165 million.
Jin said the bank aimed to “play the role of a catalyst” to mobilise private financing to ease spending pressure of the sovereign governments in infrastructure development.
He said the directors had also approved a special fund to support members with project preparations. The fund will start its operations this autumn, with China as the first donor of US$50 million.
“Our financial position is robust and will be increasingly stronger,” Jin said.
“We expect to bring additional projects to the board in the second half of the year and are working on the pipeline for 2017,” he said in his report to the board after the opening ceremony.
The bank is targeting a total of US$1.2 billion of infrastructure projects this year.
TaiShang
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I would like to see the projects under consideration to be directed at Central Asia and Southeast Asia. These are real potential regions and obviously more stable.
Last edited:
Ryuzaki
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India preparing projects worth $2-3 billion for funding by AIIB: Arun Jaitley
http://www.dnaindia.com/money/repor...lion-for-funding-by-aiib-arun-jaitley-2227881
http://www.dnaindia.com/money/repor...lion-for-funding-by-aiib-arun-jaitley-2227881
ahojunk
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I think overall, it is a good start for AIIB.
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AIIB promises to lead as new multilateral investment bank
Xinhua, June 26, 2016
AIIB President Jin Liqun speaks at the opening ceremony of the first Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) in Beijing, capital of China, June 25, 2016. (Xinhua/Li Xin)
Details that have emerged of the operation and philosophy of the Asian Infrastructure Investment Bank (AIIB) show that it is meeting expectations to lead development cooperation as a new type of multilateral financial institution.
Addressing the AIIB board of governors on Saturday, the bank's President Jin Liqun said that the bank is "now off to a strong start" and has begun to deliver on its commitments to shareholders and the world on organizational performance and corporate governance.
It unveiled the first four projects on Friday with approved financing totaling 509 million U.S. dollars. The funded projects are a power distribution system upgrade and expansion project in Bangladesh, a national slum upgrading project in Indonesia, a motorway project in Pakistan and a border road improvement project in Tajikistan. The bank has set a target of lending about 1.2 billion U.S. dollars in 2016.
"A sound corporate culture is taking shape," Jin said before briefing the board of governors on the details of the bank's first several months of operation.
The AIIB was officially opened in January this year, six months after its founding members signed its articles of agreement in Beijing.
The bank was designed specifically to "tackle the challenges and meet the current and emerging needs of its broad shareholder and stakeholder base." It aspires to "exercise exemplary organizational performance and corporate governance, and to deliver timely, cost-effective and sustainable infrastructure financing and services to our clients -- always mindful of the need to protect the natural and human environment," Jin said.
As a newcomer to the family of the world's multilateral development banks, the AIIB has been viewed with suspicion by countries including the United States, who worry that the bank might be aimed to undermine the existing international economic governance system. However, the bank led by China managed to win not only regional developing economies but also developed economies, including European countries.
The AIIB says that the gap for infrastructure financing in Asia has been huge and that the market is big enough for multiple players to coexist. Observers say the AIIB marks a departure from traditional multilateral development banks as it bears the birthmark of seeking win-win development cooperation, largely thanks to the fact that it is led by developing economies and open to both developing and developed economies.
Three of the bank's first four projects were co-financed with other multilateral development banks such as the World Bank, the Asian Development Bank and the European Bank for Reconstruction and Development, the bank said.
"The bank is moving in the right direction with its cooperation agreements with multilateral development banks," Singapore's Senior Minister of State for Law and Finance Indranee Rajah said at the meeting of board of governors on Saturday.
"Going forward, the AIIB could also consider forming similar partnerships with the private lenders to encourage more private sector financing for a critical mass of infrastructure projects in Asia," she added.
The bank is moving in exactly this direction. Jin said that the bank will try to be a pacesetter for public-private partnerships and that it will try to mobilize resources from the private sector to ease the infrastructure financing pressure on governments.
As a multilateral development bank, the AIIB offers a new platform for enriched cooperation and enhanced regional connectivity and integration, partnering with many other initiatives including the Group of 20 global infrastructure connectivity alliance initiative.
The bank aspires to be "lean, clean and green." Jin said on Saturday that the bank takes a measured approach to staffing. With the senior leadership team almost complete and mid-level management staffing under way, it now has a total staff of 39, with another 20 expected to join next month or so. They are supplemented by consultants. The total staff is anticipated to be around 100 by the end of the year.
Observers also hailed its efficiency. Oh Ei Sun, a senior fellow at the S. Rajaratnam School of International Studies, Nanyang Technological University, said that he expects this to be one of the key strengths of the new bank.
"As far as I know, the AIIB is going to be more efficient. Existing multilateral financial institutions typically require the borrowers to go through lengthy procedures and fulfill many conditions aside from the business considerations," Oh said.
Oh also said the AIIB, as an investment bank, has another advantage in its results-focused business model and market-based operation, though it is not profit-driven. It is most likely to be sustainable.
Jin said the bank will substantiate and refine its strategy and deliver strong operation results.
"The bank looks to take its place as one of the leading multilateral financial institutions for cutting-edge infrastructure investments and as a pacesetter for public-private partnerships," he said.
"We will place a premium on supporting infrastructure projects with significant cross-border benefits. We will prioritize sound 'green' infrastructure investments, promoting energy efficiency, renewables, clean transport and other projects that help reduce global warming," he added.
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AIIB promises to lead as new multilateral investment bank
Xinhua, June 26, 2016
AIIB President Jin Liqun speaks at the opening ceremony of the first Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) in Beijing, capital of China, June 25, 2016. (Xinhua/Li Xin)
Details that have emerged of the operation and philosophy of the Asian Infrastructure Investment Bank (AIIB) show that it is meeting expectations to lead development cooperation as a new type of multilateral financial institution.
Addressing the AIIB board of governors on Saturday, the bank's President Jin Liqun said that the bank is "now off to a strong start" and has begun to deliver on its commitments to shareholders and the world on organizational performance and corporate governance.
It unveiled the first four projects on Friday with approved financing totaling 509 million U.S. dollars. The funded projects are a power distribution system upgrade and expansion project in Bangladesh, a national slum upgrading project in Indonesia, a motorway project in Pakistan and a border road improvement project in Tajikistan. The bank has set a target of lending about 1.2 billion U.S. dollars in 2016.
"A sound corporate culture is taking shape," Jin said before briefing the board of governors on the details of the bank's first several months of operation.
The AIIB was officially opened in January this year, six months after its founding members signed its articles of agreement in Beijing.
The bank was designed specifically to "tackle the challenges and meet the current and emerging needs of its broad shareholder and stakeholder base." It aspires to "exercise exemplary organizational performance and corporate governance, and to deliver timely, cost-effective and sustainable infrastructure financing and services to our clients -- always mindful of the need to protect the natural and human environment," Jin said.
As a newcomer to the family of the world's multilateral development banks, the AIIB has been viewed with suspicion by countries including the United States, who worry that the bank might be aimed to undermine the existing international economic governance system. However, the bank led by China managed to win not only regional developing economies but also developed economies, including European countries.
The AIIB says that the gap for infrastructure financing in Asia has been huge and that the market is big enough for multiple players to coexist. Observers say the AIIB marks a departure from traditional multilateral development banks as it bears the birthmark of seeking win-win development cooperation, largely thanks to the fact that it is led by developing economies and open to both developing and developed economies.
Three of the bank's first four projects were co-financed with other multilateral development banks such as the World Bank, the Asian Development Bank and the European Bank for Reconstruction and Development, the bank said.
"The bank is moving in the right direction with its cooperation agreements with multilateral development banks," Singapore's Senior Minister of State for Law and Finance Indranee Rajah said at the meeting of board of governors on Saturday.
"Going forward, the AIIB could also consider forming similar partnerships with the private lenders to encourage more private sector financing for a critical mass of infrastructure projects in Asia," she added.
The bank is moving in exactly this direction. Jin said that the bank will try to be a pacesetter for public-private partnerships and that it will try to mobilize resources from the private sector to ease the infrastructure financing pressure on governments.
As a multilateral development bank, the AIIB offers a new platform for enriched cooperation and enhanced regional connectivity and integration, partnering with many other initiatives including the Group of 20 global infrastructure connectivity alliance initiative.
The bank aspires to be "lean, clean and green." Jin said on Saturday that the bank takes a measured approach to staffing. With the senior leadership team almost complete and mid-level management staffing under way, it now has a total staff of 39, with another 20 expected to join next month or so. They are supplemented by consultants. The total staff is anticipated to be around 100 by the end of the year.
Observers also hailed its efficiency. Oh Ei Sun, a senior fellow at the S. Rajaratnam School of International Studies, Nanyang Technological University, said that he expects this to be one of the key strengths of the new bank.
"As far as I know, the AIIB is going to be more efficient. Existing multilateral financial institutions typically require the borrowers to go through lengthy procedures and fulfill many conditions aside from the business considerations," Oh said.
Oh also said the AIIB, as an investment bank, has another advantage in its results-focused business model and market-based operation, though it is not profit-driven. It is most likely to be sustainable.
Jin said the bank will substantiate and refine its strategy and deliver strong operation results.
"The bank looks to take its place as one of the leading multilateral financial institutions for cutting-edge infrastructure investments and as a pacesetter for public-private partnerships," he said.
"We will place a premium on supporting infrastructure projects with significant cross-border benefits. We will prioritize sound 'green' infrastructure investments, promoting energy efficiency, renewables, clean transport and other projects that help reduce global warming," he added.
ahojunk
RETIRED INTL MOD
- Joined
- Nov 17, 2014
- Messages
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Hong Kong will join the AIIB soon.
But Taiwan will remain on the outer until their President Tsai agrees to the 1992 consensus.
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AIIB President: Hong Kong to Join AIIB Soon
2016-06-27 10:09:55 | CRIENGLISH.com | Web Editor: Guan Chao
Hong Kong will soon become a new member of the Asian Infrastructure Investment Bank (AIIB), AIIB president Jin Liqun said on Sunday.
Singapore-based newspaper Zaobao reports that Jin made the remarks at a press conference for AIIB's first annual meeting of the board of governors, adding that Hong Kong has already submitted an application.
Hong Kong's inclusion in AIIB has been under discussion recently, as the membership means more opportunities for Hong Kong.
Bank of China Hong Kong senior researcher Wang Chunxin thought Hong Kong could have many roles to play in the promotion of "Belt and Road" projects. These include:
- as a major international financing platform
- as an investment partner
- guiding inland enterprises
- facilitating RMB internationalization
- contributing talents
The annual meeting, opened last Saturday in Beijing, was attended by over 600 representatives.
Twenty-four countries, which had submitted applications previously, attended the meeting.
Applicant states or regions may officially join the organization in early 2017, after the AIIB opens its doors once again at the end of September.
The AIIB is an international financial institution proposed by China, aiming to support infrastructure projects in Asia. The bank is an open organization and all economies are welcome to join.
But Taiwan will remain on the outer until their President Tsai agrees to the 1992 consensus.
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AIIB President: Hong Kong to Join AIIB Soon
2016-06-27 10:09:55 | CRIENGLISH.com | Web Editor: Guan Chao
Hong Kong will soon become a new member of the Asian Infrastructure Investment Bank (AIIB), AIIB president Jin Liqun said on Sunday.
Singapore-based newspaper Zaobao reports that Jin made the remarks at a press conference for AIIB's first annual meeting of the board of governors, adding that Hong Kong has already submitted an application.
Hong Kong's inclusion in AIIB has been under discussion recently, as the membership means more opportunities for Hong Kong.
Bank of China Hong Kong senior researcher Wang Chunxin thought Hong Kong could have many roles to play in the promotion of "Belt and Road" projects. These include:
- as a major international financing platform
- as an investment partner
- guiding inland enterprises
- facilitating RMB internationalization
- contributing talents
The annual meeting, opened last Saturday in Beijing, was attended by over 600 representatives.
Twenty-four countries, which had submitted applications previously, attended the meeting.
Applicant states or regions may officially join the organization in early 2017, after the AIIB opens its doors once again at the end of September.
The AIIB is an international financial institution proposed by China, aiming to support infrastructure projects in Asia. The bank is an open organization and all economies are welcome to join.
ahojunk
RETIRED INTL MOD
- Joined
- Nov 17, 2014
- Messages
- 5,118
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I was surprised that the Philippines has not ratified their entry into the AIIB.
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Duterte to speed up PH entry into AIIB
Membership to broaden infra financing options
By: Ben O. de Vera
@BenArnolddeVera
Philippine Daily Inquirer
04:41 AM June 27th, 2016
INCOMING Finance Secretary Carlos G. Dominguez said the Duterte administration will fast-track the Philippines’ membership in the China-led Asian Infrastructure Investment Bank (AIIB) to widen financing options in line with plans to ramp up infrastructure development.
“The Duterte administration will definitely pursue joining the AIIB as at the forefront of the incoming administration’s socioeconomic agenda is to increase infrastructure spending in the country to 5 percent of the gross domestic product,” Dominguez, through incoming Department of Finance (DOF) spokesperson Paola Alvarez, told the Inquirer.
“With [heavy vehicular] traffic and the lack of basic infrastructure projects being hindrances to Philippine economic prosperity, the membership of the Philippines to the AIIB, an infrastructure-lending bank, is surely something that the people will benefit from,” Dominguez added.
“Together with India, Indonesia, Singapore, Burma (Myanmar), Mongolia, Pakistan, Bangladesh, South Korea, Cambodia as well as Brazil, the United Kingdom, Australia, France, Germany and Spain already being founding members of the AIIB, the Duterte administration sees no reason why Congress would not ratify the Philippines’ membership to the AIIB,” Dominguez said.
On Dec. 31 last year—only a day before the deadline—the Philippines announced that it will become a founding member of the AIIB, which aims to finance developing countries’ infrastructure needs.
The Philippines’ membership, however, remained pending as it was impossible to secure Senate ratification in the remaining days of the 16th Congress ahead of the elections last May. The country still has until year end to secure Senate approval in order to become a founding member.
“Rest assured, the DOF will do its part to work closely with the bicameral committees involved in studying the benefits the Philippines will acquire by signing as a member to the AIIB,” according to Dominguez.
Over the weekend, the AIIB convened in Beijing the 2016 annual meeting of its board of directors, which last week approved their first four loans amounting a total of $509 million to finance projects in Bangladesh, Indonesia, Pakistan and Tajikistan.
National Treasurer Roberto B. Tan was scheduled to attend the meeting, but only as an observer pending the Philippines’ membership.
To become an AIIB member, the Philippines must shell out $196 million, payable in five years or $39 million (over P1.8 billion) per year, as indicative paid-in capital. Members must pay the initial tranche of their respective contributions before this year ends.
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Duterte to speed up PH entry into AIIB
Membership to broaden infra financing options
By: Ben O. de Vera
@BenArnolddeVera
Philippine Daily Inquirer
04:41 AM June 27th, 2016
INCOMING Finance Secretary Carlos G. Dominguez said the Duterte administration will fast-track the Philippines’ membership in the China-led Asian Infrastructure Investment Bank (AIIB) to widen financing options in line with plans to ramp up infrastructure development.
“The Duterte administration will definitely pursue joining the AIIB as at the forefront of the incoming administration’s socioeconomic agenda is to increase infrastructure spending in the country to 5 percent of the gross domestic product,” Dominguez, through incoming Department of Finance (DOF) spokesperson Paola Alvarez, told the Inquirer.
“With [heavy vehicular] traffic and the lack of basic infrastructure projects being hindrances to Philippine economic prosperity, the membership of the Philippines to the AIIB, an infrastructure-lending bank, is surely something that the people will benefit from,” Dominguez added.
“Together with India, Indonesia, Singapore, Burma (Myanmar), Mongolia, Pakistan, Bangladesh, South Korea, Cambodia as well as Brazil, the United Kingdom, Australia, France, Germany and Spain already being founding members of the AIIB, the Duterte administration sees no reason why Congress would not ratify the Philippines’ membership to the AIIB,” Dominguez said.
On Dec. 31 last year—only a day before the deadline—the Philippines announced that it will become a founding member of the AIIB, which aims to finance developing countries’ infrastructure needs.
The Philippines’ membership, however, remained pending as it was impossible to secure Senate ratification in the remaining days of the 16th Congress ahead of the elections last May. The country still has until year end to secure Senate approval in order to become a founding member.
“Rest assured, the DOF will do its part to work closely with the bicameral committees involved in studying the benefits the Philippines will acquire by signing as a member to the AIIB,” according to Dominguez.
Over the weekend, the AIIB convened in Beijing the 2016 annual meeting of its board of directors, which last week approved their first four loans amounting a total of $509 million to finance projects in Bangladesh, Indonesia, Pakistan and Tajikistan.
National Treasurer Roberto B. Tan was scheduled to attend the meeting, but only as an observer pending the Philippines’ membership.
To become an AIIB member, the Philippines must shell out $196 million, payable in five years or $39 million (over P1.8 billion) per year, as indicative paid-in capital. Members must pay the initial tranche of their respective contributions before this year ends.
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