CURRENT AFFAIRS

Detailed explanation-1: -India has emerged as a top borrower from the China-sponsored Asian Infrastructure Investment Bank (AIIB) with USD 1.5 billion worth of loans last year.

Detailed explanation-2: -With the total project portfolios of US$4.4 Billion, India has been the largest borrower of Asian Infrastructure Investment Bank (AIIB) lending since the time the Bank started its operations.

Detailed explanation-3: -The Mission of the AIIB is to improve social and economic outcomes in Asia. Asian Infrastructure Investment Bank is headquartered in Beijing and started operations in 2016. China is the largest shareholder with 26.61 % voting shares in the bank, followed by India (7.6%), Russia (6.01%), and Germany (4.2 %).

Detailed explanation-4: -China has made loans to Kyrgyzstan, Laos, and Mongolia as part of the BRI. It also made a $115 million loan to Tonga to redevelop its infrastructure, and $2 billion in loans to Papua New Guinea (almost one-fourth of the country’s national debt).

Detailed explanation-5: -In the past, Beijing has tended to lend more money to some countries, including Argentina, Ecuador and Pakistan, so that they can continue to make payments on existing loans. China’s approach helps these countries afford imports of food and fuel, but leaves them with ever more debt.