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Economy

China-led AIIB's troubled loans spike amid pandemic

Credit risk 'increased significantly,' particularly in southern and western Asia

HONG KONG -- After nearly five years of operations, the asset quality of the China-led Asian Infrastructure Investment Bank is showing initial signs of souring.

The multinational lending institution's latest financial statement shows that the bank's impairment provisions have jumped nearly tenfold during the first half of 2020 from a year earlier, cutting its net profit by more than half during that same period. Although the results have not affected AIIB's credit ratings, one expert said he is "not at all surprised" at the jump in impairment provisions given the global coronavirus pandemic and the deteriorating global economy.

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