The Asian Infrastructure Investment Bank (AIIB) announced on April 4 it is establishing a $5bn recovery facility to relieve pressure on businesses and sectors heavily affected by the Covid-19 pandemic.
The China-sponsored multilateral bank has designed the facility to adapt flexibly to increasing demand for financial help from its clients, and will offer dedicated financing for the next 18 months for qualifying projects.
“A well-managed and robust development institution must be nimble enough to deal with external shocks and responsive enough to adapt to the changing needs of its clients, while also adhering to our mission of promoting economic and social development in Asia,” AIIB president Jin Liqun said in a note.
The priority sectors in accessing the financing are healthcare, health infrastructure and client investments that are specifically affected by the crisis. However, manufacturing companies in other sectors will be eligible for the financing on the grounds of preserving business continuity.
AIIB vice-president Danny Alexander said the $5bn is not intended to repair all the damage inflicted by the crisis, but to evaluate realistically the demand for financial help and the sectors that are worst afflicted. The bank is prepared to increase the size of the facility if higher demand for financial help rises among its members.