AIIB to set up crisis recovery facility in response to urgent economic and financial needs
The Asian Infrastructure Investment Bank (AIIB) has reportedly proposed to its Board of Directors to set up a crisis recovery facility in response to urgent economic, financial and public health pressures and to support a quick recovery after the current crisis.
According to reports, the new Crisis Recovery Facility is expected to offer an initial US$ 5 billion of financing to both public and private sector entities facing serious adverse impacts as a result of the pandemic and is part of the coordinated international response to counter COVID 19 crisis, as per the Extraordinary G20 Leaders’ Summit.
The facility is designed to be flexible and adaptive to emerging demands and is to offer dedicated financing for the next 18 months for qualifying projects within its membership, reports have stated.
The size of the facility could be increased depending on client demand and AIIB is also exploring how it can use its Project Preparation Special Fund to help its members, especially low-income members, whose economies are being particularly impacted by COVID-19, reports have added.
AIIB President and Chair of the Board, Jin Liqun has been quoted as saying, “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.”
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.
AIIB’s proposed response to address the impending global financial crisis will benefit Sri Lanka as well. Before the country was affected by the Covid 19 global pandemic, Sri Lanka was fast becoming a business hub in the South Asian region. Once the world comnences its revival process Sri Lanka will retain its position as a hub in Indian Ocean. Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country will definitely quicken the island’s revival. Foreign businesses/investors should therefore continue to explore business/investment opportunities in Sri Lanka.
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