China-backed AIIB to be joined by France, Germany, Italy
France, Germany and Italy have followed the UK in joining the China-sponsored Asian Infrastructure Investment Bank.
AIIB: Asian Infrastructure Investment Bank
China-backed Asian Infrastructure Investment Bank (AIIB) was in news in third week of March 2015. It was in news as it was reported that France, Germany and Italy have agreed to join the AIIB after the United Kingdom (UK) decided to join the bank.
UK was the first Western nation to join the bank disregarding reservations expressed by the United States (US) which raised concerns over its transparency.
If these US-led western allied join the bank, the total number of the bank’s member states including India will go up to 30.
Asian Infrastructure Investment Bank (AIIB) is a 50 billion dollar international investment bank and was floated in 2014 by President Xi Jingping. The bank was floated to provide support to infrastructure projects in Asia. It is expected that the bank will be formally established by end of 2015.
India along with 20 other countries on 23 October 2014 signed an agreement to become the founding member of the China-backed Asian Infrastructure Investment Bank (AIIB).