Yoo II-ho, the Finance Minister of South Korea and a member of Asian Infrastructure Investment Bank said, "European decision is a blow to global integration."
In June, 2016, the China-led Asia, Asian Infrastructure Investment Bank (AIIB) Board of Governors held their first annual meeting in Beijing. AIIB is a Multilateral Development Bank (MDB) that aims to support the development of infrastructure in the Asia-Pacific region. With India being the second largest investor in the AIIB after China, Finance Minister of India, Arun Jaitley attended the bank’s meet in which the bank’s 57 founding member countries participated. AIIB President Jin Liqun said, “By the end of the year, the Asian Infrastructure Investment Bank will grow its membership to nearly 100 countries”. The Bank will announce the second and third batches of infrastructure projects by the end of this year.
Financial market has reacted with shock to Britain decision. Yoo II-ho, the Finance Minister of South Korea and a member of Asian Infrastructure Investment Bank said, “European decision is a blow to global integration.” However, Asian Infrastructure Investment Bank (AIIB) and European Investment Bank (EIB) agreed to broaden cooperation to support investment in important projects. “All the economists and financial sectors are paying attention to the Brexit, it will have a long-term impact on the overall financing system”, said Governor of People’s Bank of China. The AIIB and EIB have already established a strong track record of cooperation through sharing of technical and financial expertise.
The Asian Infrastructure Investment Bank will also help to finance the project in the environmental and energy sectors and support lesser developed regions. A number of countries such as Australia, Italy, Germany, the Philippines and South Korea have joined the AIIB. This year, the bank is targeting a total of $1.2 billion lending in infrastructure projects.
The writer is a member of the Diplomatist Editorial Board