India to be second largest shareholder of AIIB: Reports

0

China will reportedly take a 25-30 per cent stake in the Asian Infrastructure Investment Bank (AIIB) followed by India which is likely to be the second-largest shareholder. The figures were shared by AIIB delegates  attending a meeting of the bank’s founding members on Friday.

China’s share in the USD 100 billion lender will be less than 30 per cent, an Asian delegate attending the meeting in Singapore told news agency Reuters. In all, Asian countries will own stakes somewhere between 72-75 per cent, while European and other nations will own the rest.

The three-day meeting of the China-backed AIIB is aimed at finalising the draft of articles of agreement that would decide the share of member countries and the bank’s initial capital.

According to reports, each country will now take the proposals back to their respective governments for a final decision.

A total of 57 countries have joined AIIB as its prospective founding members, throwing together countries as diverse as Iran, Israel, Britain and Laos.

The United States and Japan have stayed out of the China-led institution, hailed as a rival to the US-dominated World Bank and Japan-led Asian Development Bank, citing concerns about transparency and governance.

AIIB is expected to come into action next year is coming at a time when the space for infrastructure lending is already crowded due to the presence of major multilateral lenders and Japan’s latest move to provide $110 billion for Asian infrastructure projects.

The amount of Japanese funds, to be invested over 5 years, tops the expected USD 100 billion capitalisation of the AIIB.

LEAVE A REPLY