AIIB to hold first working meeting at end of month

Want China Times, Huang Hsin and Staff Reporter 2015-04-04

Jin Liqun speaks at the 2015 China Development Forum in Beijing, 

March 22. (Photo/Xinhua)

The China-led Asian Infrastructure Investment Bank (AIIB) will hold its first working meeting in Beijing this month to discuss share distribution and select a bank governor and other officials.

Guangzhou-based 21st Century Business Herald said the first meeting was originally scheduled for March 30, but because more countries than expected applied, it was postponed until the end of April.

According to the latest figures from China's Ministry of Finance, 52 countries, including Taiwan, applied to join the AIIB as founding members before the March 31 deadline.

Among them, the applications of 33 countries have been approved and the remaining applicants will be notified by April 15 if their applications are successful.

Jin Liqun, secretary-general of the Multilateral Secretariat for Establishing the AIIB, said AIIB's authorized capital will be US$50 billion initially and this will eventually increase to US$100 billion.

Asian countries will account for around 75% of the shares, while countries outside of Asia will have around 25%.

Shares will be allocated based on members' gross domestic products, guaranteeing that China will become the bank's largest single shareholder.

Jin said the low ratio of shares for countries outside Asia stems from China's original vision of their roles.

When China first invited developed European countries to join, Jin said, it was not to raise capital but rather to capitalize on their experience in corporate governance and technical support in promoting the development of the AIIB.

As to potential candidates to lead the bank, one Chinese official said a Chinese serving as the AIIB's first governor would have a positive effect, but the mechanism still has to be discussed. There could also be several deputy governor seats.

Some countries have actively lobbied to have one of their nationals be made a deputy governor.

Indonesia, for example, has previously said publicly it should have at least one deputy governor seat because it could be the largest client of the bank given its urgent need for infrastructure development.

Jin Canrong, an expert in international relations, said European countries such as the UK and Germany have not applied to join the bank unconditionally and they are sure to ask for a seat in the management of the bank.

Satisfying the needs of all the members will test China's ability to coordinate.

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