I saw this piece in VZGLIAD. Apparently there is a new Sheriff In Town in the World of Banking. (How is that for mixed metaphors?)
The new bank is called Asian Infrastructure Investment Bank (AIIB), and was a Chinese government initiative to support development projects mainly in the Asia-Pacific region.
The official opening ceremony took place in Beijing today, January 16, attended by delegations from 57 countries. Here is an English-language discussion of the event and its significance, from Reuters. Reuters sees this as sort of a bad thing, because the new bank competes with American-led World Bank. Nonetheless, even traditional U.S. allies such as Great Britain, Germany, and South Korea had to go along with this Chinese project and make nice faces.
Chinese President Xi Jinping launched the new bank with fanfare. “The AIIB is expected to lend $10 billion-$15 billion a year for the first five or six years and will start operations in the second quarter of 2016,” according to the Reuters piece. The bank will fund projects such as building roads, hydroelectric energy and urban development.
Chinese Minister of Finances Lou Jiwei announced that Jin Liqun will serve as President of the Bank. Jin has worked in a lot of banks before and has the necessary experience for the job. He was elected as interim President by committee of the AIIB working session back in August of 2015, meeting in Tbilisi, of all places, and will continue to perform in that role.
The headquarters of the new bank will be located in China. The five biggest investors into the bank, in order of most to least: (1) China, (2) India, (3) Russia, (4) Germany, (5) South Korea.
In order of shares translating into votes, the picture is the following:
- China – 26.06%
- India – 7.5%
- Russia – 5.92%
Russia’s allotment in the main capital of the bank comprises a share of $6.5 billion dollars.