The Union Minister of Finance, Defence and Corporate Affairs, Shri Arun Jaitley was on a four-day official visit (14th to 17th June) to Republic of Korea (ROK) and participated in the India-Korea Strategic Economic Dialogue and the 2nd Annual Meeting of Board of Governors of Asia Infrastructure Investment Bank (AIIB).
The Key Points of the visit are-
1. China-led Asian Infrastructure Investment Bank has approved USD 150 million equity investment loan to the India Infrastructure Fund. It is the bank’s first such loan to fund private projects.
2. India, South Korea agree to increase investment to push infrastructure, bilateral trade
The two countries have signed agreements to establish 9 billion US dollar in concessional credit and 1 billion dollars in Official Development Assistant, ODA funding for infrastructure development projects in India. With this, Republic of Korea became one of the first non-G-7 countries to become an ODA contributor in India.
3. India-Korea Financial Dialogue in Seoul
Both sides agreed that in the face of uncertainty and the risk of rising protectionism, there was a need for the two countries to increase efforts to stimulate investment flows, support for infrastructure development, and bilateral trade among others. The dialogue was followed by the signing ceremony of Economic Development Cooperation Fund (EDCF) agreement between India and South Korea and thereafter, an MOU was signed between EXIM Bank of India and South Korea’s KEXIM Bank.
4. 2nd Annual Meeting of Board of Governors of the AIIB
The second annual meeting of the AIIB was held on June 16, 2017, in South Korea’s Jeju Island. The theme of this year’s annual meeting was “Sustainable Infrastructure”. During this second annual meeting of governors, AIIB approved the membership of Argentina, Madagascar, and Tonga.
5. India to host 2018 AIIB Annual Meeting
The Board of Governors of the AIIB announced that the Bank’s third Annual Meeting of the Board of Governors will be held in Mumbai, India in June 2018. India is the Bank’s second largest shareholder (China is the 1st) and is becoming an increasingly important geography for AIIB investments.
About AIIB in Brief-
- Asian Infrastructure Investment Bank (AIIB) is a new multilateral development bank founded to bring countries together to address the daunting infrastructure needs across Asia.
- AIIB headquarters in Beijing, China.
- Mr. Jin Liqun is the current President of AIIB.
- AIIB commenced its operation in January 2016 and has now grown to 80 approved members from around the world.
Source- Press Information Bureau (PIB)