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Asian Infrastructure Investment Bank (AIIB) - Facts

Published on Thursday, October 15, 2015

China recently hosted the signing  in ceremony of  the Asian Infrastructure Investment Bank to bride the gap between infrastructure finance and development. The signing in ceremony took place in Beijing with 50 countries becomes its founding members.
This multilateral  finance institution is different from other world financial institutions as AIIB will only fund the financial assistance for infrastructure development in Asian countries .This step by china is also seen as to challenge the hegemony  of IMF ,World Bank and Asian Development Bank which are dominated by America ,Europeans and japan.

As of now 50 countries has signed the Article of  Agreement as founding members of Asian Infrastructure Investment Bank including Australia, Austria, Azerbaijan, Bangladesh, Brazil, Brunei Darussalam, Cambodia, China, Egypt, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Iran, Israel, Italy, Jordan, Kazakhstan, Republic of Korea, Kyrgyz Republic, Lao PDR, Luxembourg, Maldives, Malta, Mongolia, Myanmar, Nepal, Netherlands, New Zealand, Norway, Oman, Pakistan, Portugal, Qatar, Russia, Saudi Arabia, Singapore, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Turkey, the United Arab Emirates, the United Kingdom, Uzbekistan, and Vietnam .

America ,Japan opted to stay out ,not to join AIIB.

The AIIB, main focus on :

Development of infrastructure and other productive sectors in Asia, including energy and power, transportation and telecommunications, rural infrastructure and agriculture development, water supply and sanitation, environmental protection and urban development etc.

The AIIB head quartered will be located at Beijing, Mr. Jin Liqun appointed as president designate of the AIIB and have initial authorized capital stock of $100 billion. The voting rights will be based on country’s economy not on contribution. China will be 26.06 percent of voting rights followed by India which will have 7.5percent and Russia with 5.92 percent.

With the establishment of AIIB gives a big boost in infrastructure development of Asian countries as they can now avail  loans from their Asian counterpart as against to World Bank or IMF which provide loans with stringent conditions.
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