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Business / Economy

AIIB to be important creator for regional development

(Xinhua) Updated: 2015-04-03 09:50

BISHKEK - The China-proposed Asian Infrastructure Investment Bank (AIIB) will be an important creator for Central Asia's economic development, a Kyrgyz official said Thursday.

Alymbek Orozbekov of the investment department of the Kyrgyz Economy Ministry made this remark two days after Kyrgyzstan officially announced its application for a prospective founding member of the AIIB.

Orozbekov said that there are three reasons for Kyrgyzstan to join the AIIB.

First of all, a founding member would give Kyrgyzstan the right to vote in this organization.

Second, for the next five to seven years, to maintain the economic growth and development, Kyrgyzstan needs huge investment in infrastructure like many other countries, the Kyrgyz official said.

Third, the bank, as an international financial institution, unlike bilateral loans, will not affect the sovereignty of the individual beneficiary countries from a political point of view.

According to data of the Asia Development Bank (ADB), between 2010 and 2020 the Asian region will need about $8 trillion of investment in infrastructure to support economic development, said Orozbekov.

The AIIB, with registered capital of $100 billion, can open new opportunities to raise funds in infrastructure projects in the region, including Kyrgyzstan, he said.

Orozbekov said that, like the World Band and the ADB, the AIIB will be an important creator for the economic development in Central Asia, and can create healthy competition for the existing international financial organizations, while complementing the efforts of these institutions for regional economic development.

About Kyrgyzstan's future plan in the AIIB, Orozbekov said it will be fruitful and mutually beneficial.

In addition, he said the creation of the AIIB proposed by Beijing is an important measure for the Silk Road Economic Belt initiated by Chinese President Xi Jinping.

Kyrgyz Prime Minister Joomart Otorbaev signed a government order last week to approve his country's application for founding membership of the AIIB.

China's Finance Ministry welcomed the Kyrgyz application, saying Kyrgyzstan will become a founding member on April 9 if other members approve.

The AIIB, an international financial institution aimed to provide support to infrastructure projects in Asia, is expected to be established by the end of this year.

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