AIIB to lend $250m to bolster fight against Covid-19 impact

Bank says project will be co-financed by World Bank

BEIJING:

The Beijing-backed Asian Infrastructure Investment Bank (AIIB) said on Wednesday it would lend $250 million to Pakistan to help the country deal with the effects of the Covid-19 pandemic.

The project will be co-financed by the World Bank and will bolster a Pakistan government programme to strengthen health infrastructure, social safety nets, investment in human capital and economic growth, the AIIB said in a statement.

The AIIB has previously approved a loan of $500 million for Pakistan’s response to Covid-19. Both loans are part of the AIIB’s $10 billion funding facility to help public and private sectors fight the outbreak.

The AIIB also approved a $50 million loan to Georgia to support the South Caucasus country’s economy and provide more protection against the coronavirus. The loan, which will be jointly financed by the World Bank, is the second for Georgia following $100 million in emergency assistance approved in May.

Georgia, a country of 3.7 million, has reported 1,073 cases of the coronavirus and 16 deaths as of Wednesday, a relatively low number compared to some countries. However, it expects its economy to be hit hard by the impact of the pandemic as it relies heavily on tourism, forecasting GDP will shrink by 4% this year after growing 5.2% in 2019.

“By providing financing to support mitigation measures and safeguard macroeconomic stability, AIIB’s response will help minimise losses and put the country back on a recovery path,” Konstantin Limitovskiy, AIIB’s vice president for investment operations, said in a statement.