Australia to join China led AIIB [ Current News (Concise) ]
Australia has decided to join the China-led Asian Infrastructure Investment Bank (AIIB) as a founding member. With this investment it will become sixth largest shareholder in AIIB (Asian Infrastructure Investment Bank).
- Australia will contribute paid-in capital of 718.5 million US dollars over next five years i.e. till 2020. AIIB’s headquarters: It will expect to be operational in December 2015.
- Asian Infrastructure Investment Bank (AIIB) is an international financial institution proposed by China which seeks to provide support to infrastructure projects in Asia.
- Asian Infrastructure Investment 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 authorized 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%.
- Asian Infrastructure Investment 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. India is the second-largest shareholder of AIIB.
- Published/Last Modified on: June 30, 2015