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China Launches Asian Infrastructure Investment Bank, Nominates Former Deputy Finance Minister To Head Bank

China Launches Asian Infrastructure Investment Bank, Nominates Former Deputy Finance Minister To Head Bank
Little Invasion Sagie / Flickr CC BY-SA 2.0

Economy

China Launches Asian Infrastructure Investment Bank, Nominates Former Deputy Finance Minister To Head Bank

China has officially nominated Jin Liqun as its candidate to occupy the top post of the Asian Infrastructure Investment Bank (AIIB) which formally launched last week. Jin was a former deputy finance minister of the country and worked at the World Bank and the Asian Development Bank on China’s behalf.

Hua Chunying, a spokeswoman for the Chinese government, said Jin was selected because of his “extensive experience in leading and managing government and international organizations as well as private companies.” He is currently the secretary general of AIIB’s interim secretariat.

On June 29, Australia and 49 other founding members formally launched the China-led international financial institution – feared to rival the World Bank, the IMF and the ADB – in a ceremony in the Great Hall of the People in China. AIIB has a total of 57 founding members, including Britain, Germany and South Korea – all prominent U.S. allies – as well as countries from the Middle East and South America.

Its three major shareholders are China owning 30.3 percent of the bank’s shares. India is second with 8.5 percent and Russia with 6.7 percent. Germany and South Korea make up the top five biggest shareholders. Each country enjoys voting-rights in about the same way. With last week’s formal signing, it is now time to scout who will lead the bank. AIIB procedures mandate each founding member has until July 31 to nominate a candidate, where a votation will be held by the board of directors in late August.

The AIIB is scheduled to start operating by end of the year.

China said it will provide most of the initial $50 billion capital. Australia will contribute $930 million as capital over five years.

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