The Asian Infrastructure Investment Bank (AIIB) has launched a US$10 billion facility to support members dealing with the impact of the US-Israel war on Iran, the group announced on Thursday.
The Energy, Food Security and Economic Resilience Facility, sitting alongside the bank’s existing financing tools, offers up to US$10 billion over two years to help members tackle urgent needs around energy security, food security and economic resilience, according to a statement published by the Beijing-based bank.
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“This facility will enable members to address development impacts stemming from external shocks while strengthening long-term resilience,” said AIIB President Zou Jiayi in the statement.
“While providing financing to address members’ critical short-term needs including access to energy and food, as well as sustaining their reform momentum, AIIB commits itself to continue strong engagement and support for our members’ efforts in infrastructure development, green transition and sustainable growth.”
The facility will deliver aid through fast-disbursing budget support, financing for critical imports and liquidity support to affected members, according to the bank.
It can also back government response programmes and help countries shore up economic resilience amid the fallout from the conflict. Infrastructure companies and financial intermediaries, meanwhile, can tap it for short-term working capital and business continuity needs.
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