India second largest stakeholder in Asian Infrastructure Investment Bank
With a stake of 8.52%, India will be the second largest stakeholder in the China-led $100 billion multilateral Asian Infrastructure Investment Bank (AIIB). While China is the largest stakeholder with 30.34%, Russia is the third largest stakeholder with 6.66%. Their voting shares are calculated at 26.06 percent, 7.5 percent and 5.92 percent respectively. Representatives of 57 founding countries, including India, signed an agreement on Monday for the bank operations of which will begin later this year with two pre-conditions – (a) at least 10 prospective members sign the agreement, and (b) the initial subscribed capital is no less than 50 percent of the authorised capital. United States and Japan are staying away from the China-led institution citing concerns over the transparency and governance. Recently, in a move to increase its influence in the fast-growing Asian region, the Government of Japan announced that it is looking at investing in infrastructure development in the Asian region over the coming five years.
The Government of Japan is likely to invest US$100 billion in roads, bridges, railways and other building projects in Asia, said media reports.
Through this investment, Japan is likely to prove its stance and build its profile in the Asian region by building high-quality infrastructure through the human resource development and the technology transfers.
Under this initiative, the Japanese government will extend loan assistance (in yen currency) to the Asian countries and the loans to be provided by the Japanese government-affiliated ‘Japan Bank for International Cooperation’ will be extended to the Asian countries through the Japan International Cooperation Agency.
June 29, 2015 | 8:22 pm IST.
to success.