Chinese Development Bank Approves First Loans
The outcome of Britain’s referendum that was held last week is expected to have an impact on the world economy in the coming days. Nonetheless, Asian Infrastructure Investment Bank, a Chinese based development bank, started to offer loans to clients on June 24th. The management team stated that the United Kingdom will continue to play a significant role in the growth and development of the bank.
The bank opened its doors in January, 2016 and since then it has garnered 57 governments who have registered as members. In a press briefing, Jin Liqun, one of the management employees, pointed out that the bank has already received expressions of interests from other states and countries. In a bid to ensure that the bank adheres to the stipulated regulations, Jin said that 24 observers from different nations attended the meeting.
The growth of this bank is a clear indication of the growing economy and financial capability of China. It also shows the country’s desire to venture into the global finance market that is hugely dominated by Europe and the United States. It is interesting to note that the U.S opposed the bank initiatives, but that did not stop it from elevating its operations to the next level of success.
Unexpectedly, the bank received immense support from the United States allies, such as France, Australia, Britain, and South Korea. However, Japan and Washington have yet to express their desire to do business with the bank.
The bank approved loans totaling to $509 million. The loans will help materialize projects, such as the construction of roads in Tajikistan and Pakistan, upgrading of slums in Indonesia, and construction of a power plant in Bangladesh. It also estimates that Asian economies need to invest approximately $8 trillion in ports, roads, railways, and other infrastructures in the next decade.