Asian Infrastructure Development Bank (AIIB) President Jin Liqun said that the bank has increased its multilateral assistance to countries including Pakistan and Sri Lanka.
“As funding remains restricted, it is important that we assist insolvent countries. The AIIB has increased its multilateral aid to countries like Pakistan and Sri Lanka and is prepared to help the world’s most vulnerable nations. Additionally, we are thinking about providing Turkey with post-earthquake assistance,” he added at the China Development Forum (CDF) 2023, noting that the international community faces numerous dangers and difficulties.
China Economic Net (CEN) reported on Tuesday that global central banks are likely to continue tightening their monetary policy due to persistently high inflation, tight employment markets, and spillover effects from high commodity prices. “At a time when debt levels are rising, the situation [for some developing and low-income countries] maybe even more troubling.”
For those developing countries, higher uncertainty means a change in investors’ risk tolerance. Liqun believes that amid such pessimism, more investment is needed, especially in infrastructure.
The AIIB president stated that the development bank would “continue to firmly support developing economies in creating the conditions for long-term economic growth,” adding that the governance system needed to be changed so that countries that are developing could participate more actively and come to more shared conclusions within the multilateral framework.