AIIB launches $10 billion support facility for countries hit by Middle East conflict, India among key shareholders

The Asian Infrastructure Investment Bank (AIIB) has launched a $10 billion fund facility to support member countries affected by the economic fallout of the ongoing Middle East conflict, PTI reported. India is the second-largest shareholder in the China-led multilateral lender after China.The Beijing-headquartered bank said the newly launched Energy, Food Security and Economic Resilience Facility will be available to member countries whose development prospects have been affected by the conflict, which has triggered energy disruptions across several parts of the world.According to AIIB, the facility will supplement the bank's regular financing instruments and provide a time-bound financing envelope of up to $10 billion over two years to offer "exceptional financing support to its members and clients in addressing their acute needs for energy security, food security and economic resilience."The financing support will include fast-disbursing budgetary assistance, funding for critical expenditures and imports, and liquidity support to affected countries and institutions.The bank said the facility could support response programmes and resilience-building measures linked to the economic fallout of the conflict, while also helping infrastructure companies and financial intermediaries meet short-term working capital, refinancing and business continuity requirements.AIIB, which began operations in 2016, currently has more than 100 approved members including China, India, Bangladesh, Pakistan, Iran, Iraq, Australia, Israel, Kuwait, Nepal, Oman, Russia, Singapore, Sri Lanka and the UAE.Capitalised at $100 billion, the institution is AAA-rated by major global rating agencies. According to AIIB records, China remains the largest shareholder with 26.54 per cent voting rights, followed by India at 7.58 per cent, Russia at 5.9 per cent and Germany at 4.1 per cent."This facility will enable members to address development impacts stemming from external shocks while strengthening long-term resilience," AIIB President Zou Jiayi said."While providing financing to address members' critical short-term needs, including access to energy and food, as well as sustaining their reform momentum, AIIB commits itself to continue strong engagement and support for our members' efforts in infrastructure development, green transition and sustainable growth," she said.The initiative comes after several multilateral development institutions announced additional support mechanisms for countries facing disruptions in energy markets, trade routes and wider economic spillover effects linked to the ongoing conflict in Middle East.