Delegates of 50 countries on 29 June 2015 signed the 60-article agreement that will lay the legal framework for the China-initiated Asian Infrastructure Investment Bank (AIIB).
Australia was first to sign the agreement at the Great Hall of the People in the Chinese capital Beijing.
Out of the 57 founder-member countries, the remaining seven - Denmark, Kuwait, Malaysia, Philippines, Holland and South Africa and Thailand could not sign the agreement as it was not ratified by their respective domestic authorities.
The agreement outlined the financial share of each member, policymaking, business and operational systems and governance structure of the AIIB.
Key features of AIIB
• It will have authorized capital of 100 billion US dollars and the initial subscribed capital is expected to be around 50 billion US Dollar. The paid-in ratio will be 20 per cent.
• 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 29.78 billion US dollars of the bank's 100 billion US dollars capital base, becoming its largest shareholder with a 30.34 percent stake.
• India will be the second-biggest shareholder at 8.4 percent, followed by Russia, which will have a 6.5 percent stake.
• China, India and Russia will have a voting share of 26.06 percent, 7.5 percent and 5.92 percent, respectively.
• It will start operations by the end of 2015 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.
Member countries of AIIB
China, India, Russia, Britain, France, Australia, Germany, Luxembourg, Switzerland, Austria, Singapore, South Korea, Qatar, Oman, Pakistan, Bangladesh, Denmark, Kuwait, Malaysia, Philippines, Holland, South Africa, Thailand, Azerbaijan, Brunei, Cambodia, Egypt, Finland, Georgia, Iceland, Indonesia, Iran, Israel, Italy, Jordan, Kazakhstan, Kyrgyzstan, Laos, Maldives, Malta, Mongolia, Myanmar, Nepal, The Netherlands, New Zealand, Norway, Poland, Portugal, Saudi Arabia, Spain, Sri Lanka, Sweden, Tajikistan, Turkey, United Arab Emirates (UAE), Uzbekistan and Vietnam
The number of member countries in the bank is expected to increase to about 70, exceeding the 67-member ADB.
About Asian Infrastructure Investment Bank (AIIB)
Representatives from 21 Asian countries signed the Memorandum of Understanding on Establishing Asian Infrastructure Investment Bank (AIIB) on 24 October 2014 in Beijing.
It is designed to finance infrastructure building in Asia and is headquartered in Beijing.
It is expected to bridge the infrastructure deficit by playing a complimentary role along with other financial institutions like Asian Development Bank (ADB) and the International Monetary Fund (IMF).
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
When: 29 June 2015