A North Korean envoy reportedly approached in February the Chinese president of the Beijing-led bank – created to rival the World Bank – only to be turned away after Pyongyang failed to disclose sufficient information on the state of the country's economy and finances.
China's answer was "no way," sources told the Emerging Markets, adding it came as a shock to Pyongyang. North Korea has been receiving money loans from China, but Beijing said it will have to repay AIIB credits, since it is not an "institution set up to disburse grants."
The new regional bank has raised concerns in Washington as a potential competitor of Western-led financial institutions. The picture for the IMF, World Bank and other international money lenders further clouded after the United Kingdom, Italy, France and Germany said they wanted to join.
Japan, one of the largest Asia-Pacific economies, said earlier on Tuesday it will not yet join the Chinese-led bank, even as the March 31 deadline to become a founding member is about to expire.
