Although loans from the AIIB seem attractive, economists warn Vietnamese officials to be cautious accepting these relatively un-monitored loans. The cost of capital for AIIB loans is currently low, but with the yen unstable, repayment of long-term loans may become a burden on Vietnam in the future.
ADB Praises and Partners with the AIIB
The AIIB's infrastructure investment in India will help offset the hit to GDP growth caused by demonetization in the country, according to the ADB.
The AIIB will soon surpass the ADB in number of members and is seen as a potential rival. However, the two development banks have signed an MOU to facilitate the co-financing of projects, including a road construction project in Pakistan and a gas transmission project in Bangladesh.
Defense Minister of Singapore Calls for Benevolent China-U.S. Relations, Praises the Asian Infrastructure Investment Bank.
Speaking at the Munich Security Conference, the Defence Minister of Singapore called for greater cooperation between China and the U.S. in the Asia-Pacific. Defence Minister Ng Eng Hen called on China to continue an inclusive vision of growth for Asia, praising the efforts of the Asian Infrastructure Bank and welcoming the One Belt One Road Initiative. The future stability and prosperity of the Asia-Pacific hinges much on the relationship between China and the U.S. and its cooperation on matters of security and regional development.
AIIB and IFC Sign Agreement
The Asian Infrastructure Investment Bank and the International Finance Corporation have signed an International Swaps and Derivatives Association (ISDA) master agreement. Their first formal and bilateral agreement, the agreement will increase their risk-bearing capacity and decrease currency risks associated with emerging market investments, expanding their overall lending capacity. The AIIB has been a lot more open to collaboration than many anticipated since its opening in early 2016, having co-financed projects with the World Bank and the ADB, who originally worried the AIIB would be competition for them.
Nepal Investment Summit 2017
Jin Liqun, president of the Asian Infrastructure Investment Bank, will attend the 2017 Nepal Investment Summit March 2-3. The AIIB President will observe infrastructure projects with over 100 other foreign delegates. The summit aims to uncover the benefits of foreign investment and hopes to build relationships between domestic and foreign investors.
As for the Asian Development Bank this past week....
Mongolia’s Economic Bailout
In conjunction with the World Bank, IMF, and other bilateral partners, the Asian Development Bank is providing Mongolia aid as apart of a $5.5 billion economic stabilization package. The bailout's terms require Mongolia to pursue more disciplined economic policies and stronger regulations for banking and finance.
ADB supports Philippine’s proposed tax reforms
The Asian Development Bank supports excise tax reforms proposed by the Philippine’s Department of Finance. The proposed tax reform program is apart of President Duterte’s socioeconomic plan to increase spending on infrastructure, further reform taxes, and decrease red tape limitations.
Work on ADB-Financed Bridge to Begin in March
The bridge over the Ganges, which the Asian Development Bank and the Indian government have partnered up to build, is to begin constriction early next month. A much-needed piece of infrastructure in Bihar, the bridge will connect the northeastern states of India and Nepal, and will allow for better traffic distribution and international and regional trade.
ADP to Fund Urban Development in Vanuatu
The Asian Development Bank will fund an additional 2.87 million USD to support the Port Vila Urban Development Project which will improve sanitation, urban drainage and roads in Vanuatu’s capital. According to the ADB’s Senior Country Coordination Officer, Nancy Wells, the sanitation improvements will help the tourism industry in Port Vila, and will help the city better prepare for disasters and strengthen resilience to climate change.