05/22/2015, 00.00
CHINA – ASIA
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Beijing and Delhi to lead Asian ‘super bank’

A consensus has emerged from a meeting of the lender’s founding members. To avoid undue European influence, Asian members have accepted that China’s share of the bank’s capitalisation will be between 25 and 30 per cent with India as second largest shareholder. Germany will be represented on the bank’s board of directors.

Singapore (AsiaNews/Agencies) – China will probably take a 25-30 per cent stake in the Asian Infrastructure Investment Bank (AIIB) and India is likely to be the second-largest shareholder.

Overall, Asian countries will own between 72 to 75 per cent of the bank, whilst European and other nations will hold the balance.

Proposed by China in May 2014, the AIIB is expected to become Asia’s main international financial institution to rival the US-dominated World Bank, Manila-based Japan-led Asian Development Bank, and the Europe-led International Monetary Fund. Great Britain and Germany will be among its founding members.

The bank’s initial capitalisation is expected to be US$ 100 billion with China expected to be its dominant member but not exercise total control.

Some 57 countries have signalled their intention of joining the bank as its prospective founding members, including countries at loggerheads with each other, like Israel and Iran.

The United States and Japan have decided to stay away from the China-led institution. Japan plans instead to provide US$ 110 billion for Asian infrastructure projects to counter China’s economic push.

Member nations are still discussing how many directors the board should have. However, Germany expects to have one seat, this according to the nation's envoy to China, Michael Clauss.

Germany, he stated, "being the most important European economy, will be represented on the board".

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