Management of AIIB’s Financial Resources
Liquidity and Investment Management
AIIB's ALM policy requires that the operational liquidity portfolio should cover at least 40% of net cash requirements for the upcoming 36 months and 100% of net cash requirements for any upcoming 12-month period. This is to ensure AIIB is able to continue disbursing new loans and fulfill all its payment obligations for at least one year ahead, without additional new borrowing via the capital markets.
As of 31 December 2018, AIIB’s total liquidity reached USD 13.1 billion, of which USD 9.8 billion (75% of the total) was held in time deposits and other short-term money market instruments.
The remaining USD 3.29 billion (25% of total assets) represents liquidity over and above that which is required for operational liquidity. During 2018 these funds were managed externally in a portfolio of short duration securities.