Asian Infrastructure Investment Bank

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Representatives of prospective founders of the Asian Infrastructure Investment Bank (AIIB) prepare to attend the signing ceremony of the articles of agreement of AIIB in Beijing, capital of China, June 29, 2015.

The Asian Infrastructure Investment Bank (AIIB 亚洲基础设施投资银行) is an international financial institution proposed by China. Aiming to support infrastructure projects in Asia, the AIIB is open to all economies. The bank had 57 prospective founding members in total, with the rest of the seven countries waiting for domestic approval. The March 31, 2015 is the deadline for countries to apply to become AIIB founding members. After that, countries and regions will still be able to join, but only as common members.


The Memorandum of Understanding on Establishing the AIIB specified that its authorized capital is 100 billion U.S. dollars and the initial capital will be around 50 billion dollars. The paid-in ratio will be 20 percent. As agreed, Beijing will host the AIIB's headquarters.

On June 29, 2015, delegates of 50 prospective founding members of the AIIB signed the bank's articles of agreement (AOA), which lays the legal framework for the multilateral institution.

The 60-article agreement outlined the financial share of each member, policy making, business and operational systems, and governance structure. The AIIB is designed to finance infrastructure building in Asia.

Australia was first to sign the agreement in the Great Hall of the People.

Asian countries will contribute up to 75 percent of the total capital and be allocated a share of the quota based on their economic size.

China will contribute US$29.78 billion of the bank's capital base, becoming the largest shareholder within the bank with a 30.34 percent stake in AIIB.

Under the formula that also factored in possible new members' share and prospective founding members' rights, China got 26.06 percent of the total votes.

India and Russia have a voting share of 7.5 percent and 5.92 percent, respectively.

The Beijing-headquartered bank will start operation at the end of the year under two preconditions: At least 10 prospective members sign the agreement, and the initial subscribed capital is no less than 50 percent of the authorized capital.


Chronology on AIIB

October 2013 -- President Xi Jinping proposed establishing the AIIB to finance infrastructure construction and promote regional interconnectivity and economic integration in his speech at the Indonesian parliament.

Oct. 24, 2014 -- Twenty-one Asian countries willing to join the AIIB as founding members signed in Beijing a Memorandum of Understanding (MOU) on establishing AIIB. The 21 countries are Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam.

Nov. 27, 2014 -- Indonesian Finance Minister Bambang Brodjonegoro signed in Jakarta a MOU to join the AIIB as a prospective founding member on Tuesday.

January 2015 -- The number of AIIB prospective founding members rose to 26 after Indonesia, New Zealand, Maldives, Saudi Arabia and Tajikistan officially joined.

March 12, 2015 -- Britain applied to join the AIIB as a prospective founding member.

March 17, 2015 -- China welcomed the decisions made by France, Italy and Germany to apply to join the AIIB.

March 19, 2015 -- China welcomed the decision made by Luxembourg to apply to join the AIIB.

March 20, 2015 -- China welcomed Switzerland's decision to apply to join the AIIB.

March 24, 2015 -- Chinese Premier Li Keqiang reaffirmed cooperation between the AIIB and existing financial institutions. The AIIB will take an open and inclusive attitude and be complementary to existing development banks, said Li at a meeting with the president of the Asian Development Bank (ADB) Takehiko Nakao. The AIIB will strengthen the region's communication, social and economic development, Li said. Nakao said the ADB was ready to cooperate with the AIIB.

March 26, 2015 -- Turkey applied to join the AIIB as a prospective founding member. Should the other founding members approve Turkey's application, it will formally become a founding member on April 10.

March 27, 2015 -- China welcomed the decisions of Austria and the Republic of Korea to apply to join the AIIB. Both countries will become prospective founding members on April 11 if other members approve.

March 28, 2015 -- Russian First Deputy Prime Minister Shuvalov said Russia decided to join the AIIB. He made the announcement at the 2015 annual conference of the Boao Forum for Asia in the coastal town of China's southern island province of Hainan.

March 28, 2015 -- China welcomed the decisions of Brazil, the Netherlands and Georgia to apply to join the AIIB. They will become prospective founding members on April 12 if other members approve.

March 28, 2015 -- In the keynote speech "Towards a Community of Common Destiny and A New Future for Asia" given by Xi on March 28 at the Boao Forum for Asia Annual Conference 2015, Xi said that "We will vigorously promote a system of regional financial cooperation, explore a platform for exchanges and cooperation among Asian financial institutions, and advance complementary and coordinated development between the AIIB and such multilateral financial institutions as the Asian Development Bank and the World Bank."

The "Belt and Road" and the AIIB are both open initiatives. We welcome all countries along the routes and in Asia, as well as our friends and partners around the world, to take an active part in these endeavors.

March 29, 2015 -- China welcomed the decisions of Denmark and Australia to apply to join the AIIB. Denmark filed its application letter on March 28, while Australia followed on March 29. Should all existing members approve the applications, Denmark will become a prospective founding member of the AIIB on April 12 and Australia on April 13.

March 30, 2015 -- China welcomed the decisions of Egypt and Finland to apply to join the AIIB. Should all existing members approve the applications, Egypt will become a prospective founding member of the AIIB on April 14 and Finland on April 12.

March 31, 2015 -- China welcomed the decisions of Kyrgyzstan and Sweden to apply to join the AIIB. Kyrgyzstan will become a prospective founding member on April 9 if other members approve and Sweden on April 15.

March 31, 2015 -- Taiwan submitted a letter of intent on joining the AIIB proposed by the Chinese mainland. The island's last-minute application, signed by the island's finance chief Sheng-Ford Chang, was faxed to the Multilateral Interim Secretariat for the AIIB, according to a statement shown by the island's finance and mainland affairs authorities.

March 31, 2015 - It is announced that 57 countries have joined or applied to join the AIIB as prospective founding members before the deadline. Thirty-seven are classed as “intra-regional members”, entitled to the bulk of the shares in the bank, while the other 20 are “non-regional members”.

A Chief Negotiators’ Meeting is convened at the finance deputy level as the primary body responsible for negotiating the bank’s articles of association. A Multilateral Interim Secretariat is established to provide technical support and services to the CNM.

June 29, 2015 - The 57 prospective members sign the articles of association in Beijing. The articles will be submitted to each nation’s legislature for approval, and the bank is expected to be formally established before the end of the year.

Dec. 1, 2015 - The AIIB plans to lend $10 billion to $15 billion a year for the first five or six years, according to Jin Liqun, the president-designate of the AIIB.

Jan. 16, 2016 - The opening ceremony of the Asian Infrastructure Investment Bank (AIIB) launches in Beijing with Chinese President Xi Jinping's attendance.

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