Categories: Current AffairsInternational

Nirmala Sitharaman Attends 9th AIIB Board of Governors Meeting in Samarkand

Union Minister for Finance and Corporate Affairs Nirmala Sitharaman represented India at the 9th Asian Infrastructure Investment Bank (AIIB) Board of Governors meeting held in Samarkand, Uzbekistan, on September 25-26, 2024. During her visit, she also engaged in discussions with Uzbekistan’s President Shavkat Mirziyoyev on the sidelines of the meeting.

Theme of the Meeting

The theme for this year’s AIIB Board of Governors meeting was “Building Resilient Infrastructure for All,” which emphasizes the bank’s focus on developing financial tools that enable member countries to withstand climate-induced shocks. In June 2024, AIIB introduced Climate Policy-Based Financing (CPBF) to mobilize private capital, supporting member countries in fulfilling their national climate action plans. AIIB President Jin Liqun highlighted that approximately 60% of AIIB’s lending in 2024 would be directed toward climate financing.

Membership Update

During the meeting, the Board of Governors approved the Republic of Nauru’s application to join the AIIB, bringing the total membership to 110.

About AIIB Board of Governors

The Board of Governors serves as the highest decision-making body of the AIIB, with each member country appointing a Governor and an alternate Governor, typically the finance minister. From India, Nirmala Sitharaman acts as the Governor, while Ajay Seth, Secretary of the Department of Economic Affairs, serves as the alternate Governor.

About the Asian Infrastructure Investment Bank (AIIB)

The Asian Infrastructure Investment Bank (AIIB), operational since 2016, is a multilateral bank with China as its largest shareholder (29.9%) and India as the second largest (7.74%). AIIB provides both sovereign and non-sovereign loans, with sovereign loans guaranteed by governments and non-sovereign loans directed toward the private sector. The bank focuses on funding projects that contribute to sustainable and environmentally sound infrastructure development.