Thursday, April 16, 2015

Israel joins Chinese infrastructure bank

Amiram Barkat

Globes - 15/04/2015

Israel is joining the Asian Infrastructure Investment Bank (AIIB) despite US opposition.

The secretariat of the Asian Infrastructure Investment Bank (AIIB) today officially announced that Israel had been approved as the bank's 52nd out of 57 founding members. The Chinese initiative for founding the multinational financial institution was designed to provide financing for infrastructure development projects in Asian countries - general development of the region. The founding of the bank is slated for completion towards the end of this year.
The bank's founding is arousing concern in the US, which fears that it is the start of a process that will eventually end the dominance currently enjoyed by the US in the world's important financial institutions. Former US Secretary of the Treasury Lawrence Summers even warned 10 days ago that "This past month may be remembered as the moment the United States lost its role as the underwriter of the global economic system."