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Asian Infra Investment Bank set up in Beijing

Asian Infra Investment Bank set up in Beijing

56 member AIIB was formally established on 27.12.15 after it garnered the required approval of the member countries.

According to the Article of Agreement, the bank can be established when atleast 10 countries with subscribed capital not less than 50% give their approval.

So far, 17 countries, with subscribed capital more than 50% have approved the mini constitution and submitted to Beijing.

It will become operational in mid January in new year.

17 countries are: Brunie, Myanmar, Singapore, Brunie, Australia, China,Mongolia, Austria, UK, New Zealand, Luxemberg, South Korea, Georgia, Netherland, Germany, Norway, Pakistan and Jordan.

Facts about AIIB

  • It will begin its operation with an authorised capital of $ 100 bn and subscribed capital of $ 50 bn.
  • China, India and Russia are the three largest shareholders, taking 30.34%, 8.52% and 6.66% stake respectively. Their voting shares are calculated at 26.06%, 7.5% and 5.92%, respectively.
  • It will make investments in sectors like energy, transportation, urban construction and logistic, education and healthcare. The major fund will go to finance infrastructure — airports, mobile phone towers, railways and roads — in Asia.
  • Based on the shareholding, India is expected to get the post of the vice-president.
  • China has already nominated its former Finance Minister Jin Liqun as the first president of the Bank
  • The AIIB will be operational after Board of Directors and executive council meet for the first time. The meetings are slated to run from January 16 to 18 in Beijing.
  • Headquarter: Beijing
  • The bank’s president will be officially appointed and the management team will be in place at the meetings.
  • According to the bank’s president-designate, Jin Liqun, all members of the International Bank for Reconstruction and Development and the Asian Development Bank (ADB) could apply to join the AIIB.

Other world Financial Institutions:

  1. IBRD
  2. IMF
  3. ADB
  4. NDB
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