Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » World
1-min read

AIIB to Provide Local Currency Financing in India, Pak to Reduce Cross-border Investment Risks

Rising debt financing costs from high global interest rates and cross-border investment uncertainties as a result of trade tensions have raised concerns about sustainable infrastructure financing, AIIB said AIIB President Jin Liqun.

PTI

Updated:January 30, 2019, 7:46 PM IST
facebookTwitterskypewhatsapp
AIIB to Provide Local Currency Financing in India, Pak to Reduce Cross-border Investment Risks
The signboard of Asian Infrastructure Investment Bank (AIIB) is seen at its headquarter building in Beijing. (Image: Reuters)
Loading...

Beijing: China-based Asian Infrastructure Investment Bank (AIIB), in which India is the second largest shareholder, plans to launch local currency financing in India and some other Asian nations later this year to reduce cross-border investment risks caused by exchange-rate fluctuations.

The first group of countries to have this new service could include India, Indonesia and Pakistan, AIIB President Jin Liqun was quoted as saying by state-run China Daily.

Using local currency for cross-border financing is a service usually provided by multilateral development organisations to hedge against foreign exchange-rate risks arising from settlement in US dollars. The risk grew when the greenback became stronger against currencies in many emerging economies last year.

Rising debt financing costs from high global interest rates and cross-border investment uncertainties as a result of trade tensions have raised concerns about sustainable infrastructure financing, said Jin, who recently visited India and met Prime Minister Narendra Modi.

The AIIB, which provides a multilateral regional financing and investment platform for infrastructure development, decided to expand project investment to USD four billion in 2019 in Asia and elsewhere.

"Recent currency volatility in emerging markets is a cause for concern. It is likely to lead to delays in projects, weakening the outlook for the project pipeline," a recent AIIB report said.

With authorised capital of USD 100 billion, China is the largest shareholder with 26.06 per cent voting shares in the AIIB. India is the second largest shareholder with 7.5 per cent followed by Russia 5.93 per cent and Germany with 4.5 per cent.

The bank has already provided close to a USD billion investment loans to various projects in India.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results