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China not currently considering borrowing from its new development bank: state media

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China is not currently considering borrowing from its new international development bank to bankroll domestic projects, the state-run People's Daily said on Friday.

[BEIJING] China is not currently considering borrowing from its new international development bank to bankroll domestic projects, the state-run People's Daily said on Friday.

The comments were made ahead of the bank's opening ceremony in Beijing on Saturday which both President Xi Jinping and Premier Li Keqiang are expected to attend.

The China-backed Asian Infrastructure Investment Bank (AIIB) is focused on helping build infrastructure in other developing countries in Asia, amid a global economic downturn and a lack of infrastructure in the region, the newspaper quoted China's finance minister Lou Jiwei as saying. "China is entitled to receive AIIB loans for projects but when considering that other countries in the region have more pressing needs to develop their infrastructure, China suggests the first priority should not be to fund domestic projects," the mouthpiece of the Chinese Communist Party wrote.

The AIIB will focus on infrastructure projects in Asia, distinguishing itself from other development banks like the World Bank and the Asian Development Bank, which primarily work on poverty alleviation, the newspaper said, adding that the AIIB will complement, rather than compete, with other development banks.

The AIIB is expected to invest US$10 billion to US$15 billion this year and will make its loan facility available in the second quarter of 2016.

REUTERS