❝ A new Chinese-led development bank has approved its first loans and expects to suffer no impact from Britain’s vote to leave the European Union, the bank’s president said Saturday at its first annual meeting.
The Asian Infrastructure Investment Bank, launched in January with 57 member governments, already has received expressions of interest from possible additional members, said Jin Liqun at a news conference. He said observers from 24 other nations attended the meeting.
❝ The bank reflects China’s rapidly growing financial might and desire for a bigger voice in global finance, which is dominated by the United States and Europe.
Despite initial U.S. opposition, the AIIB attracted unexpectedly wide support from American allies including Britain, France, Australia and South Korea.
Washington and Japan have refrained from seeking membership…
No doubt Obama is happy at least one client state is obedient.
❝ The bank’s board approved a total of $509 million in loans Friday for a power project in Bangladesh, slum-upgrading in Indonesia and road-building in Pakistan and Tajikistan, according to Jin, a former chairman of China’s sovereign wealth fund…
❝ China, the world’s second-largest economy, has the bank’s biggest voting stake with 26 percent of shares and has pledged to put up most of its initial $50 billion in capital but has no veto power. India has the second-largest voting stake at 7.5 percent and Russia is third with 5.9 percent.
“AIIB is owned by all its members,” said Jin. “This is not China’s bank.”
China has chosen not to borrow from the AIIB to avoid “crowding out” other borrowers but might do so in “special cases,” Jin said…
❝ The AIIB initially was seen as a potential rival to the World Bank and Asian Development Bank…But the Asian bank forged cooperative relations with them and pledged to adhere to global standards.
In a reflection of that cooperation, the World Bank contributed to the Indonesia project. Money for the Pakistan project also came from the ADB and the British government. The Tajikistan project is co-financed by the European Bank for Reconstruction and Development.
Golly. Cooperation working somewhere. Which is not a surprise, of course, unless all your news only comes from sources inside the Beltway around Washington, DC.