Mr Cross noted that many sovereign balance sheets are currently under pressure due to debt sustainability issues, rising interest rates and slowing gross domestic product growth.
This means significant headwinds for infrastructure investment, he said.
“The infrastructure gap in Asia has been assessed at something like US$5 trillion. AIIB has entered that space with US$100 billion of capital from our shareholders, which means we can make a contribution, but we can’t solve it on our own,” he said, adding that private sector involvement is crucial.
CHINA’S BELT AND ROAD INITIATIVE
Mr Cross also distanced the AIIB from China’s Belt and Road Initiative, emphasising that it is a policy announced by the Chinese government.
“It’s worth recognising that we have 106 sovereign shareholders, so all 106 have policy initiatives that are within their own framework (and) within their own decisions,” he said.
“AIIB is not part of a Belt and Road Initiative.”
