Source: HM Treasury | | 18/02/2016
The Asian Infrastructure Investment Bank (AIIB) is a new international financial institution. The purpose of the bank is to drive infrastructure projects in transportation, energy, telecommunications and other infrastructure across Asia. The AIIB will do this using a variety of support measures – including loans, equity investments, and guarantees.
The President of the AIIB, Jin Liqun, has appointed Sir Danny Alexander as Vice-President and Corporate Secretary, and member of the executive management team of the AIIB. Danny Alexander was Chief Secretary to the Treasury between 2010 and 2015, during the coalition government.
Sir Danny Alexander said:
‘I will relish the challenge of being part of this new institution as it establishes itself as a crucial part of the multilateral landscape, supporting growth, tackling climate change, and helping drive up living standards in Asia. The creation of the AIIB is the right initiative at the right time to meet these challenges, and I am committed to doing all I can to support the success of the bank.’
The UK was the first major Western country to seek to join the AIIB and is keen to work in the region and create opportunities for British companies. The UK will have one of the twelve seats on the AIIB’s board of directors, delivering crucial influence in the bank from the outset.
The Articles of Agreement make clear that key decisions, including on operational and financial policies, can only be made by a super majority of signatory countries. This will ensure that no single country is able to force through decisions that do not have widespread support. The work of the AIIB will complement work already done in the region by existing multilateral development banks such as the World Bank and Asian Development Bank.