The facility is designed to offer dedicated financing for the next 18 months for qualifying projects
The Asian Infrastructure Investment Bank (AIIB) is proposing to its board of directors to create a crisis recovery facility in response to urgent economic, financial, and public health pressures and to support a quick recovery after the current crisis, the Covid-19 pandemic.
The proposed crisis recovery facility will offer an initial $5 billion of financing to both public and private sector entities facing severe adverse impact as a result of the pandemic.
It is part of the coordinated international response to counter the Covid-19 crisis, as per the Extraordinary G20 Leaders’ Summit held in March.
The facility has been designed to be flexible and adaptive to emerging demands which 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 the global crisis.
AIIB 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,” he continued.
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.
It could also provide the financing needed to preserve the productive capacity of other productive sectors, including manufacturing, that have been hit by the coronavirus pandemic.
AIIB will do its part to promptly respond to the financing needs of its members and clients in close partnership with other international development institutions, said its president.
“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,” he remarked.
AIIB, a multilateral development bank, is headquartered in China’s Beijing. It began operations in January 2016 and has now grown to 102 approved members worldwide.