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April 1, 2015

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Home » Business » Finance

Dozens sign up to join china-led AIIB

Source: Shanghai Daily | April 1, 2015, Wednesday | Print Edition

AS dozens of countries from Europe to the Middle East to Africa jumped on the bandwagon of joining the China-backed Asian Infrastructure Investment Bank, Japan, which remains cautious, missed yesterday’s application deadline.

Japanese Finance Minister Taro Aso reiterated “concerns” about governance at the AIIB, its debt sustainability and environmental and social safeguards.

China set a March 31 deadline to become a founding member of the AIIB and as of 6pm yesterday, a total of 46 countries had applied.

Founding membership will be finalized on April 15.

Sweden applied to join the new bank yesterday, just hours before the deadline to join as a founding member.

The country will become a founding member on April 15 pending approval by existing members, according to a statement on the Chinese finance ministry’s website. The total number of applicants awaiting approval is now 16.

The bank currently has 30 prospective founding members. Switzerland and Britain were formally accepted on March 28.

Norway has also said it wanted to join as a prospective founder member.

“Norway is a substantial contributor to global development efforts, and wishes to join countries from Asia and other parts of the world in further refining the structure and mission of the AIIB,” Foreign Minister Boerge Brende said in a statement on a government website.

China’s finance ministry said that Kyrgyzstan had also applied to become a member.

Japan and the United States are the two notable absentees.

Washington has been left increasingly isolated in its opposition to the AIIB, as many of its allies, including Australia, South Korea, Britain, France, Germany and Italy, have announced that they would join the bank.

President Barack Obama’s administration has waged an intense but low-profile lobbying campaign against it, but has watched with frustration as allies around the world piled in, not wanting to miss out on a lucrative part of the world.

Japanese Prime Minister Shinzo Abe told party leaders: “There is no need to participate hastily,” according to a Kyodo News Service report.

He indicated that Japan was siding with its powerful ally the US on the issue, adding that “The United States now knows that Japan is trustworthy.”

China has said it is open to Japan’s joining.

“As for whether or not Japan is willing to participate, we have previously said that we welcome all countries to proactively participate,” foreign ministry spokeswoman Hua Chunying said yesterday.

She added that China would respect the wishes of any country “whether or not they join or when they decide to join.”

China’s Finance Minister Lou Jiwei said earlier this month that the AIIB would be set up by the end of the year. All parties will complete talks and sign the charter of the AIIB by the middle of the year, and by the end of the year will make the charter effective and officially establish the institution.

China is expected to foot the bulk of the money needed to get the AIIB started, with donations from other members set to increase the overall fund to more than US$100 billion.

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