IMF chief backs creation of Asian Infrastructure Investment Bank

9 Apr 15

International Monetary Fund managing director Christine Lagarde has welcomed the creation of the Chinese-led infrastructure investment bank, saying the IMF was ‘proud’ to be a partner in the country’s economic endeavors.

The planned Asian Infrastructure Investment Bank (AIIB) already has over 30 members and has been designed to boost investment in areas such as transport and energy, similar to the World Bank and Asian Development Bank.
 
Rounding up her five-day visit to China today, Lagarde said: ‘I noted the impressive efforts made by the Chinese government to reform in three key areas in particular: cleaning up the house by promoting governance, cleaning up the air and clearing the path for further engagement with the world... through more international investment and trade.
 
‘I welcomed China’s various initiatives in this area, including through the newly established Asian Infrastructure Investment Bank.’
 
Just over a week ago, the UK announced that was to become a founding member of the AIIB.
 
However, the US has voiced its concern at the UK and others for supporting the bank, warning that the AIIB could undermine existing multilateral institutions.
 
US National Security Council spokesman Patrick Ventrell said: ‘We believe any new multilateral institution should incorporate the high standards of the World Bank and the regional development banks.
 
‘Based on many discussions, we have concerns about whether the AIIB will meet these high standards, particularly related to governance, and environmental and social safeguards.’
 
Countries have until the end of this month to back the venture. As well as the UK, France, Germany, and New Zealand have signed up to become founding members.
  • Judith Ugwumadu
    Judith Ugwumadu

    Judith writes about public finance, public services and economics across Cooking Recipes International and Cooking Recipes. She previously undertook reporting stints at Financial Adviser, Global Security Finance and The Sunday Express.

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