More states approved as founders of China-led bank

April 12, 2015 in News by RBN Staff

Source: Press TV

The signing ceremony of the MoU for the establishment of the AIIB, October 24, 2014, Beijing, China

The signing ceremony of the MoU for the establishment of the AIIB, October 24, 2014, Beijing, China

The Chinese Finance Ministry says Brazil, Denmark, Finland, Georgia and the Netherlands have been accepted as founding members of the Beijing-led Asian Infrastructure Investment Bank (AIIB).

“With the consent of the existing founding members, the Netherlands, Brazil, Finland, Georgia and Denmark officially became the founding countries of the AIIB on April 12,” the ministry said in a statement posted on its website on Sunday.

The announcement came a day after Austria, Spain and South Korea were also approved as founders of the bank.

Other countries earlier approved as founders include Iran, France, Germany, the UK, Italy, Jordan, Qatar, Saudi Arabia, Singapore, Pakistan and Malaysia. Russia is also set to become a founding member.

The exact number of AIIB founding members is expected to be finalized on April 15. They will be entitled the right to assist in writing the AIIB rules.

Any other country that joined the AIIB after March 31 will only be given an ordinary membership. The organization will grant them voting rights, but they will have no say in writing the rules.

Chinese President Xi Jinping (C, front) stands with representatives of 21 Asian countries who signed the Memorandum of Understanding on establishing the Asian Infrastructure Investment Bank (AIIB) in Beijing on October 24, 2014.

Meanwhile, concerns are already rising in Washington over growing applications by countries – many of them hardcore US allies – to join the AIIB.

The AIIB– which is seen as an emerging rival to powerful Western-led financial institutions such as the World Bank, the Asian Development Bank and the International Monetary Fund – is feared by the White House to be a new Chinese policy to increase the influence of the world’s second largest economy at regional and international levels.

China established the AIIB in 2014 and is expected to announce an initial subscribed capital of $50 billion, which is planned to be raised to USD 100 billion. The bank was formed to provide finance to infrastructure projects across Asia.