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Tuesday, 8 May 2018

How the AIIB is emerging as a genuine rival to the World Bank

How the AIIB is emerging as a genuine rival to the World Bank: By expanding into Africa and Latin America and away from Asia, the China-led Asian Infrastructure Investment Bank (AIIB) is emerging as a very real rival to the World Bank, writes James Kynge for the Financial Times. The AIIB signed a memorandum of understanding with the African Development Bank (AfDB) in May to co-finance infrastructure projects in the continent. AIIB is already taking part in projects in Egypt with the International Finance Corporation (IFC). Over on the side of the pond, the bank has an agreement with the Inter-American Development Bank (IADB), Latin America’s multilateral lending organisation. The bank intends to increase the total loans it disburses this year from USD 2.7 bn last year and USD 1.6bn in 2016. A decision has not yet been made but the number is between USD 3 bn and USD 3.5 bn this year, AIIB VP Danny Alexander says in an interview. This expansion in the loan portfolio comes as China’s Belt and Road Initiative, which includes key projects in Egypt, takes off. The bank is an important strategic component of the initiative.

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