FM wants AIIB to expand non-lending services to low-income nations

PTI New Delhi: Finance Minister Nirmala Sitharaman on Wednesday said AIIB should consider expanding its range of non-lending services such as technical and project preparation assistance, particularly for low-income countries. She exhorted AIIB to strive for standardisation and greater provision of innovative financial tools and products, besides playing a catalytic role in mobilising private sector resources, not just in terms of capital but also its technical expertise, innovation, and market-driven approaches. Beyond financial innovations, she said that AIIB should consider expanding its range of nonlending services such as timely technical and project preparation assistance, particularly for low-income countries, the finance ministry said in a post on X.

Speaking on 'Building Resilient Infrastructure for All', the Union Finance Minister said that the world is facing multiple challenges; with climate change making its presence increasingly felt, the need for sustainable and resilient infrastructure is higher than ever. She noted that geopolitical tensions and unsustainable debt burden are limiting the ability of many countries to finance infrastructure, thus putting the onus on Asian Infrastructure Investment Bank (AIIB). She said that the Governors have the responsibility to ensure that AIIB delivers.The Finance Minister commended AIIB's client-centric approach, its agile response during the COVID-19 pandemic, its execution of several special funds to deepen client outreach.

Geopolitical tensions and unsustainable debt burden are limiting the ability of many countries to finance infrastructure.