50 nations, including India, sign agreement on China-led AIIB

Beijing: Representatives from 50 founding countries, including India,signed an agreement that provided the legal framework for the China-led USD 100 billion  multilateral Asian Infrastructure Investment Bank (AIIB). 

The 60-article agreement specified each member's share as  well as governance structure and policy-making mechanism of  the bank, which is designed to finance infrastructure in Asia.  The delegates from 50 founding countries gathered at the  Great Hall of the People for the signing ceremony. Australia  was the first country to sign the agreement, followed by 49  other members. Seven more countries are due to sign by the end  of the year. The AIIB will have authorised capital of USD 100 billion,  and Asian countries will contribute to up to 75 per cent of  the total capital. Each member will be allocated a share of  the quota based on their economic size, according to the  agreement.  "China, India and Russia are the three largest  shareholders, taking a 30.34 per cent, 8.52 per cent, 6.66 per  cent stake, respectively.

Their voting shares are calculated  at 26.06 per cent, 7.5 per cent and 5.92 per cent," state-run  Xinhua news agency reported.  The AIIB is designed to finance infrastructure  construction in the continent. The AIIB, which will have  billions of dollars to lend, is expected to go into operation  later this year.  Speaking at the signing ceremony, China's Finance  Minister Lou Jiwei said the AIIB will uphold high standards  and follow international rules in its operation, policy-making  and management to ensure efficiency and transparency. After signing the agreement, representatives of  prospective founding members will take the agreement back to  their respective countries for legal adoption processes, the  Chinese Finance Ministry said. 

The US and Japan, which oppose the AIIB, are the most  prominent countries not to join.  The establishment of the new financial institution is  seen as a diplomatic win for China, the world's second largest  economy.  The AIIB was proposed by President Xi Jinping in October  2013. A year later, 21 Asian nations, including China, India,Malaysia, Pakistan and Singapore, had signed an agreement to  establish the bank, which will be headquartered in Beijing. The AIIB is seen as a rival to the World Bank and Asian  Development Bank.