Question : AIIB (Asian Infrastructure Investment Bank) started operation after the agreement entered into force on —
(a) 25 December 2012
(b) 26 March 2011
(c) 1 July 2010
(d) None of the above
Answer (d)
Related facts
- Asian Infrastructure Investment Bank has recently (June,2020) approved a $750 million loan to India to help the government strengthen its battle against the adverse impact of COVID-19 pandemic on poor and vulnerable households.
- Co-financed with the Asian Development Bank, the budgetary support will go toward bolstering economic aid for businesses, including for the informal sector, expanding social safety nets for the needy, and strengthening the country’s health care systems.
- AIIB’s sovereign loans to India that have already been approved amount to $3.06 billion, including a recent $500-million COVID-19 emergency response.
- The current loan will be the second for India under AIIB’s COVID-19 CRF.
- The multilateral lender initially set up its Covid-19 CRF, with a $5 billion investment which was later doubled to $10 billion, to make funds available to its members for urgent economic, financial and public health pressures and quick recovery from the crisis
CRF stands for – Crisis Recovery Facility. - In total the AIIB has approved $4.05 billion to its members under this facility, including $355 million to China, $500 million to Pakistan, $250 million to Bangladesh and $750 million to Indonesia and the Philippines each.
Asian Infrastructure Investment Bank
- The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank that aims to support the building of infrastructure in the Asia-Pacific region.
- The bank currently has 78 members as well as 24 prospective members from around the world.
Formation
- The bank started operation after the agreement entered into force on 25 December 2015, after ratifications were received from 10 member states holding a total number of 50% of the initial subscriptions of the Authorized Capital Stock.
- On 25 December 2015, the Articles of Agreement entered into force. On 16 January 2016, the board of governors of the bank convened its inaugural meeting in Beijing and declared the bank open for business.
By – Pankaj Pandey