According to Mr. Cross, issues with debt sustainability, rising interest rates, and sluggish growth of the gross domestic product are now putting pressure on many sovereign balance sheets.
This means there will be a lot of obstacles to network expense, he said.
” The infrastructure gap in Asia has been estimated to be around$ 5 trillion US.” With US$ 100 billion in cash from our owners, AIIB has entered that market, indicating that while we can contribute, we are unable to resolve it on our own. He continued by saying that private sector engagement is essential.
INITIATIVE BELT AND ROAD IN CHINA
Mr. Cross even distinguished the AIIB from China’s Belt and Road Initiative, highlighting the fact that the Chinese authorities had announced the program.
We have 106 sovereign shareholders, so each of them has policy initiatives that fit their own framework( and ) decisions ,” he said.
The Belt and Road Initiative is never a part of AIIB.