The soon-to-be-established Asian Infrastructure Investment Bank plans to launch large-scale project financing to develop infrastructure in Asia next year, the China-led multilateral agency’s chief said Wednesday.
“In the next decade, Asia will be short of $8 trillion in its development funds … the AIIB will not wait long.” AIIB president-designate Jin Liqun said in Seoul.
Speaking at a news conference, he expressed hope that Korea will actively engage in the development projects.
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President Park Geun-hye (right) meets AIIB president-designate Jin Liqun at Cheong Wa Dae on Wednesday. (Yonhap) |
The AIIB is a new multilateral development financier with membership of 57 countries including Korea -- which secured the fifth-largest stake in the bank after China, India, Russia and Germany. Earlier this year, Korea vowed to contribute $750 million as paid-in capital over the next five years.
Jin said the new entity’s most competitive feature will be its “speedy operations” by moving faster than the existing organizations, such as the World Bank and the European Bank for Reconstruction and Development.”
He also said the AIIB would take full advantage of Korea and China’s know-hows in fast infrastructural development that fruited miraculous growth rate in the past.
He emphasized the strong partnership among the AIIB members, claiming that “no single organization can meet up the massive $8 trillion investment demand in the next 10 years.”
Once it is in full swing, the AIIB’s fast runner model will become the trailblazer of a new multilateral development bank for other newborn development banks to benchmark, Jin added.
The news conference came shortly after he held a meeting with 100 Korean business leaders and members of the Korea Chamber of Commerce and Industry. Jin said he is “confident about Korean companies’ participation and contribution (to the AIIB’s operation).”
About the outlook for the Chinese economy, the AIIB leader dismissed concerns that the global No.2 economy is losing growth momentum.
“The Chinese economy is going through a maturing phase, to enter the ‘new normal’ stage,” he said.
“Becoming a new normal means that it will no longer have an economic turbulence of such striking magnitude (as in the past).”
China has sent shockwaves through the world with its sudden implementation of yuan devaluations to boost its slowing economy and its contraction of outbound shipments. Its plunging stock markets also rattled the global financial markets.
The AIIB leader came to Seoul on Tuesday for a two-day visit during which he met with top government officials and business leaders.
Jin paid a courtesy call on Park to discuss issues of mutual concerns including ways to strengthen ties between the government and the AIIB before leaving Seoul later in the day.
During the meeting at Cheong Wa Dae, Park asked for AIIB’s support for the establishment of the Northeast Asia Development Bank, a financial institution being pushed by the Seoul government to support North Korean economic development in exchange for Pyongyang’s denuclearization.
In response, Jin showed support for the NADB, saying its synergy effect with the AIIB will expedite Asian development.
By Chung Joo-won (
joowonc@heraldcorp.com)
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