According to British Reuters report dated July 2 local time, Canada plans to announce the establishment of a global defense bank with about 10 countries at the NATO summit to be held in Turkey next week.
Canadian Chief Negotiator and CEO of The Bank of Canada, Isabel Hudon, stated that Canadian Prime Minister Justin Trudeau is actively promoting the establishment of a "Defense, Security, and Resilience Bank" as an important component of his "Middle Power Alliance" concept for this year. This initiative aims to address the emerging fragmentation in the traditional international order led by the United States.
We set the North Atlantic Treaty Summit as a deadline... We hope to announce the list of founding member states at that time. Heden said.
She introduced that the bank’s goal is to provide support for the defense construction of allied countries, and to raise up to 100 billion pounds (approximately 9054 billion yuan) in funds through financing mechanisms.
According to Heden, the first batch of member countries are expected to be all from European countries (except Canada), but she did not disclose the specific list. She also emphasized that there is still uncertainty regarding the announcement, as it depends on final negotiations with the allies, including the commitment of capital from various countries. However, the project is already gaining momentum.
However, reports indicate that the success of this project still depends on whether it receives support from key countries, in order to ensure the credit foundation required for an AAA credit rating.
Heden revealed that this mechanism has been discussed ‘fruitfully’ with South Korea. There is a possibility of South Korea joining the initiative, with about 50% chance. However, currently no member of the Group of Seven (G7) has indicated any intention to join this project.
