Australia to join China led AIIB
Australia has decided to join the China-led Asian Infrastructure Investment Bank (AIIB) as a founding member.
In this regard, Australia will contribute paid-in capital of 718.5 million US dollars over next five years i.e. till 2020. With this investment it will become sixth largest shareholder in AIIB.
About Asian Infrastructure Investment Bank (AIIB)
- AIIB is an international financial institution proposed by China which seeks to provide support to infrastructure projects in Asia.
- Headquarters: It is expected to be operational in December 2015.
- The bank is also considered as China’s move to balance the power with the WB, IMF and ADB which are being controlled/dominated by the US, EU and Japan respectively.
- The authorised capital of AIIB is US $100 billion and the initial subscribed capital is expected to be around US $50 billion. The paid-in ratio will be 20%.
- The bank will lend designed finance to infrastructure projects like construction of roads, ports, railways etc. in Asia.
- India along with other 20 member nations was the founding member of AIIB and had signed agreement in this regard in October 2014. It should be noted that India is the second-largest shareholder of AIIB.
Month: Current Affairs - June, 2015