The Asian Infrastructure Investment Bank (AIIB) has proposed the creation of a US$5 billion crisis recovery facility in response to the urgent economic, financial and public health pressures caused by the Covid-19 outbreak.

The proposed facility, which aims to support the region’s quick recovery, will offer an initial US$5 billion of financing to public and private sector entities facing serious adverse impacts as a result of the pandemic. The facility is part of the co-ordinated international response to counter the crisis discussed at the Extraordinary G20 Leaders’ Summit held on March 26.

The financial assistance programme is designed to be flexible and adaptive to emerging demands. It will offer dedicated financing over the next 18 months to qualifying projects within its membership.

The size of the facility could be increased depending on client demand. The bank is also exploring how it can use its Project Preparation Special Fund to help its members, especially low-income members, whose economies are being particularly impacted by Covid-19.

The facility could support emergency public health needs, such as health infrastructure for emergency preparedness and clients whose infrastructure investments are severely impacted by the pandemic. It could also provide the financing needed to preserve the productive capacity of other productive sectors, including manufacturing, that have been hit by Covid-19, the AIIB notes.

“The international community needs to come together to pool our resources to help the world navigate the current pandemic and economic upheaval,” says Jin Ligun, AIIB president. “I believe this new facility will help our clients to overcome immediate financial pressures and maintain critical long-term investments that otherwise may not be possible.”