Effort to avert the Financial Crisis
Asia’s leading multilateral development banks have recently announced that they will boost their support to companies and governments stricken by the coronavirus pandemic with an aim to avert the financial crisis in the region. The Beijing based Asian Infrastructure Bank has planned to lend at least $5bn to member countries to help them battle the pandemic. AIIB’s President and Chairman Jin Liqun told that he expected this amount to serve members’ needs for 18 months when combined with existing lending programs. He further added that if the demand is much bigger, it is possible to increase the amount with the approval of the board.
Seeking to Provide a Further Package
The Asian Development Bank has also announced a $6.5 billion package and is seeking to provide a further package. “We quickly compiled the resources available to help out member countries and announced $6.5 bn. But in the last two weeks, we are working really hard to mobilize additional resources.” said Yasuyuki Sawada, the ADB’s Chief Economist. He also warned that unless governments and financial institutions in the region took prompt measures, the risk of financial crisis was significant.
Working in Tandem with International Banks
These banks are also working with some of the International Banks. The AIIB said that it was working closely with IMF, World Bank, and International Finance Corporation for greater impact. The IFC has put together $8bn to help countries and banks deal with the crisis. “The International finance institutes have to support both public sector and private sector to minimize disruptions and provide a safety net for the most vulnerable,” said Mr.Jin.
