AIIB members to ink pact on Monday

Global finance ministers will officially set foundation for Beijing backed Asian Infrastructure Investment Bank on June 29

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

Chinese President Xi Jinping will meet with delegates from 57 countries in Beijing on Monday to sign an agreement on the formation of the the Asian Infrastructure Investment Bank (AIIB).

"The AIIB has made a lot of progress so far in its preparatory work, but this is only the first step in a long road ahead," told Chinese Finance Minister Lou Jiwei People's Daily newspaper on Thursday.

The AIIB, seen as a rival to the World Bank, was launched in Beijing last year to support investment in infrastructure in Asia and 57 countries are currently participating in the institution. 

The founding members of the China-backed AIIB will sign an agreement determining each member's share and the bank's initial capital.

Asia is expected to own up to 75 percent of the bank, where each member will be allotted a share of that 75 percent quota based on their economic size, a Japanese source quotes. Other nations on the other hand will own the remaining shares.

According to officials, China is anticipated to hold 25-30 percent stake followed by India with a possible 10-15 percent. 

The AIIB will commence with an authorised capital of $50 billion, eventually rising to $100 billion. 

The bank is expected to be officially established by the end of 2015. 

TRTWorld and agencies