addressing die ceremony of the bank, which along with the BRICS New Development Bank (NDB) is expected to expand infrastructure financing, rivalling the World Bank and Asian Development Bank. Asia’s financing needs for basic infrastructure are absolutely enormous, Mr. Xi said at the launch, adding the bank would aim to invest in projects that were “high-quality’, low-cost”. In order for Asia to continue to be the most dynamic region for global growth, it needed to invest in infrastructure and connectivity, Chinese Premier Mr. Li Keqiang said. AIIB already has a very good pipeline of cofinancing projects (with other international development banks) and stand alone projects, Mr. Jin Liqun, AIIB President said. An Indian delegation headed by Mr. Dinesh Sharma, Additional Secretary in the Ministry of Finance, attended the opening ceremony. A successful AIIB that sets itself apart from the World Bank and the International Monetary Fund (IMF) would be a diplomatic triumph for China, which opposes a global financial order it says is dominated by the United States and does not adequately represent developing nations. The bank will have an internal department focused on compliance and integrity that reports directly to the bank’s board.
In all, 57 countries have joined as founding members, while the US and Japan have stayed out. The bank was formally established in Beijing on December 25, 2015. Chinese Finance Minister Mr. Lou Jiwei was elected as the first Chairman of the AIIB Council. China’s former Finance Minister, Mr. Jin Liqun, was elected the first AIIB President. With authorised capital of $100 billion and subscribed capital of —————– .———————————
$50 billion, Beijing-based AIIB will invest in sectors including energy, transportation, urban construction, and logistics as well as education and healthcare. China, India and Russia are the three largest shareholders, taking a 30.34 percent, 8.52 percent, 6.66 percent stake, respectively in the newly formed bank. Their voting shares are calculated at 26.06 percent, 7.5 percent and 5.92 • percent. Based on the shareholding, India is expected to get the Vice-President’s post. The opening of the AIIB marked a milestone in the reform of the global economic governance system, Mr. Lou said in an interview earlier. The AIIB would work together with multilateral development banks, including the World Bank and the Asian Development Bank, to facilitate Asian infrastructure construction and sustainable development, Mr*. Lou said. Asian Development Bank (ADB) President Mr. Takehiko Nakao has congratulated the AIIB.