Economy

AIIB says review finds Chinese Communist control charge unfounded

Published

1 year ago

July 8, 2023

AIIB says review finds Chinese Communist control charge unfounded

© Reuters. FILE PHOTO: Flags of China are displayed next to the logo of Asian Infrastructure Investment Bank (AIIB) in this illustration picture taken June 15, 2023. REUTERS/Florence Lo/Illustration/File Photo

By Joe Cash

BEIJING (Reuters) -Allegations that the Chinese Communist Party has undue influence within the Asian Infrastructure Investment Bank “are without any foundation whatsoever,” Danny Alexander, a vice president, said on Friday, following the fiery resignation of a senior employee.

Bob Pickard, the AIIB’s former chief of communications said in June that he had quit the bank as it was “dominated by Communist Party” members and had a “toxic culture”.

The AIIB, which dismissed the allegation as baseless at the time, on Friday published the findings of an internal review, which it said “confirms that AIIB’s governance structure functions as intended, to deliver an apolitical, constructive, balanced and consensus-oriented decision culture”.

“Mr Pickard’s allegations have been exhausted through this review … and found to be without any foundation whatsoever,” Alexander, who is the AIIB’s vice president for policy and strategy, said in an interview.

When asked for comment on the review, Pickard said: “I do not believe this dishonest and inaccurate report seriously investigated my core concern of Communist Party influence.”

He said he had raised his concerns over the party’s influence with AIIB’s president, Jin Liqun, who said this year the bank would not get dragged into political disputes.

Set up by President Xi Jinping in 2016 as a Chinese alternative to the World Bank and other Western-led multilateral lenders, the AIIB has 106 members worldwide, including Pickard’s home nation of Canada, which began its own inquiry.

“We have a direct relationship with the People’s Republic of China as a shareholder, just as we do with the United Kingdom or Canada,” Alexander said when asked about the AIIB’s relationship with Beijing, which he added was the same as its ties with the British or Canadian governments.

“We regard Canada as an important member of our bank… we look forward to the outcome of their own review and working with them for many years to come,” he added.

The Canadian government replied: “The Department of Finance Canada is conducting an immediate review of the allegations raised and of Canada’s involvement in the Asian Infrastructure Investment Bank. This review is ongoing,” when asked for comment.

The AIIB said its review uncovered one instance of Pickard referring to another staff member as belonging to the Communist Party, adding that this featured in an instant message exchange with an officer in the president’s office.

Pickard said there were errors in the report, which included a failure to mention an email he sent in which he raised his concerns about his safety as a Canadian national.

“There have never been allegations of political influence on the governance and policy or strategy discussions and decisions,” the AIIB report concluded.

Economy

Russian central bank says it needs months to make sure CPI falling before rate cuts -RBC

Published

9 months ago

December 26, 2023

Russian central bank says it needs months to make sure CPI falling before rate cuts -RBC

MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.

The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.

Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.

“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.

Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.

“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.

The bank will next convene to set its benchmark rate on Feb. 16.

The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.

Economy

China identifies second set of projects in $140 billion spending plan

Published

9 months ago

December 25, 2023

China identifies second set of projects in $140 billion spending plan

© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo

SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.

With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.

The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.

China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.

The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.

“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.

The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.

($1 = 7.1315 renminbi)

Economy

Russian central bank says it needs months to make sure CPI falling before rate cuts -RBC

Published

9 months ago

December 25, 2023

Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.

“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.

Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.

“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.

The bank will next convene to set its benchmark rate on Feb. 16.

The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.