India likely to hold second largest stake in AIIB

 The Dollar Business Bureau India is likely to be the second largest shareholder of the Asian Infrastructure Investment Bank (AIIB), while China’s share stands above that of India’s, in the bank intended for infrastructure development in the Asia region. An information in this regard was said to have been given by the delegates attending a meeting of the AIIB's founding members in Singapore, on Friday. While China’s share is expected to be between 25-30%, India’s share is likely to be around 10-15% in the USD$ 100 billion lender aimed at the infrastructure development in the Asian region, informed the delegates, according to the reports. Of the total 57 countries those have joined as the founding members of the AIIB, the total share is likely to be held majorly by the Asian countries to an extent of 72-75% and the rest by the European countries. And, further details regarding finalization of the draft of articles of agreement that would decide the share of member countries and the bank's initial capital would be decided during the third-day meeting of the China-backed AIIB meeting. Agreements on the structuring of the bank will likely be signed by the end of June, added the reports. Here, it is noteworthy to mention that the United States and Japan are staying away from the China-led institution citing concerns over the transparency and governance. In this regard, a recent move by the Government of Japan to extend investments in infrastructure projects in Asia, gains importance. Towards a similar move, the Japanese Prime Minister Shinzo Abe, earlier a day, unveiled Japan’s plans to expand financing for infrastructure projects in Asia by 30%. The Japanese PM informed that roughly $110 billion would be offered in the next five years to fund high-quality infrastructure investments in Asia through various channels. This also includes expanding the Asian Development Bank’s lending capacity and Japanese Yen loans towards Asia’s development. He was further said to have made emphasis on building subway and bridge construction projects which, even though expensive, would be durable, environmentally friendly and disaster-proof, among other infrastructure projects, by using its long-expertise in energy-saving technology and reliable public transportation systems. Apart from the World Bank and the Asian Development Bank, there also exist plans that are underway over the development of bank by the BRICS (Brazil, Russia, India, Brazil, Russia, India, China and South Africa) nations.    

May 22, 2015 | 3:39 pm IST.