The International Monetary Fund, World Bank and the Asian Development Bank have expressed their support for the China-led international bank as the US now propose to work in partnership, according to the Wall Street Journal.
The Obama administration wants to use existing development banks to co-finance projects with Beijing’s new organization, the WSJ reported. This comes as Washington faced defiance from its major allies, which have been applying to join the Asia Infrastructure Investment Bank (AIIB) despite America’s warnings to stay away.
“The US would welcome new multilateral institutions that strengthen the international financial architecture,” Nathan Sheets, US Treasury under-secretary for International Affairs was cited as saying. “Co-financing projects with existing institutions such as the World Bank or the Asian Development Bank will help ensure high quality, time-tested standards are maintained.” He added that co-financed projects would ensure the bank complements rather than competes with existing institutions.