AIIB grows in the right direction

 Wang Yiwei

Global credit rating agency Fitch Ratings has recently assigned the Asian Infrastructure Investment Bank (AIIB) its highest possible rating-AAA with a stable outlook.

This is another top-notch rating the AIIB has received from the world's top three credit rating agencies. On June 29, Moody's Investors Service assigned it a long-term foreign currency issuer rating of AAA.

The two ratings the AIIB gained reflect the financial institution's stable operations and good reputation.

The AIIB has attracted great attention from the international community since it was initiated by China in October 2013. The multilateral development bank, which opened its doors for business in Beijing in January 2016, contains 80 members as of June 2017.

The financial institution's success lies in its growing in the right direction and advancing along the right path.

The AIIB is focused on infrastructure construction in Asia. Infrastructure is an important prerequisite for economic and social development, while financial support is an essential factor for carrying out infrastructure construction. It is estimated that between 2010 and 2020, developing countries in Asia will require over US$700 billion in infrastructure investment. The establishment of the AIIB will help fill the capital gap and advance regional infrastructure connectivity.

The AIIB has unique advantages as its major members are developing countries, making it a strong bridge promoting South-South cooperation and North- South cooperation.

The AIIB sticks to the principle of win-win cooperation, reform of the international financial system and modern governance. It also draws on the good experience and practices of other multilateral development banks.

(The author Wang Yiwei is a professor of International Relations at Renmin University of China. This is an excerpt from his article which was first published in Chinese. The translator is Zhang Junmian.)