50 countries sign AIIB agreement

Global Business

In what was a major step for the China-sponsored Asian Infrastructure Investment Bank (AIIB), key documents were signed in Beijing on Monday.

All 57 prospective founding members attended a signing ceremony, but only the 50 countries who have who have approved membership to the bank through their domestic legislatures signed the deal.

The articles remain open for signing by the remaining seven prospective founding members.

The agreement includes details of how much share each member will hold. China will contribute 429.8 billion towards the total authorized capital of $100 billion, the Finance Ministry said. China will also hold 30.34 percent of the bank’s stake, and 26.06 percent of its voting power.

Although Beijing will have more than a quarter of the voting rights, China will not seek veto power. China’s stakes and voting power will be diluted as new members join the AIIB, China’s Vice Finance Minister Shi Yaobin said.

Speaking at the signing ceremony, China’s Finance Minister Lou Jiwei said he was confident the AIIB would start functioning before the end of the year.

Story by CCTV News