China’s President Xi Jinping formally opens AIIB in Beijing
Chinese President Xi Jinping has formally opened Asian Infrastructure Investment Bank (AIIB) in Beijing. The bank was formally established in Beijing on 25 December 2015. China’s former Finance Minister Lou Jiwei was elected as the first Chairman of the Bank’s Council while its former Finance Minister Jin Liqun was elected its first President.
About Asian Infrastructure Investment Bank (AIIB)-
AIIB multilateral development bank backed by China and is seen as a rival to the World Bank and Asian Development Bank (ADB). It has been established to infrastructure projects including energy, transportation, urban construction and logistics as well as education and healthcare in Asia-Pacific region. It’s has a Headquarters at Beijing. Total there are 57 members, of which 37 are regional and 20 non-regional Prospective Founding Members (PFM). It will be of 100 billion US dollars. The initial subscribed capital will be around 50 billion US Dollar and the paid-in ratio will be 20 per cent.
Its regional members (Asian) will be the holding around 75 percent of shares i.e. they will be majority shareholders. They have been allocated their capital share on quota basis i.e. based on their economic size. For each member country it is based on the size of their economy and not on authorised capital share to the Bank. China is highest contributor with 30.34 percent stake in authorized capital. It has 26.06 per cent of the voting rights along with veto powers for certain key decisions. India is second largest shareholder with 8.52 per cent stake and voting share of 7.5 per cent.