China’s Parliament approves AIIB agreement [ Current News (Concise) ]
About approval of AIIB agreement: China’s Parliament has approved the AIIB (Asian Infrastructure Investment Bank) agreement which creates the legal framework for the Bank. The approval by China is considered important step closer to the AIIB’s formal establishment.
- 54 founding members of the bank had signed the 60 - article agreement in June 2015 which provides the legal framework for Institution of AIIB and remaining members are expected to sign before the end of 2015.
- It is compulsory for all forthcoming members of AIIB to approve the agreement before the end of 2016 by their respective top councils to formally become its founding members.
- India is also a founder member of AIIB which is tasked to finance infrastructure development projects across Asia.
- Asian Infrastructure Investment Bank (AIIB) was established to finance organization projects including energy, transport and infrastructure projects in Asia.
- AIIB is seen as a challenging to the World Bank and Asian Development Bank which managed by most noticeable countries US, Japan and European etc.
- Its headquarters will come in effective by end of 2015.
- Approved assets will be of 100 billion US dollars.
- The initial contributed assets will be around 50 billion US Dollar and the paid - in ratio will be 20 percent.
- Its regional Asian members will be majority shareholders by holding around 75 percent of shares.
- Published on: November 6, 2015