AIIB to begin operations soon

The Asian Infrastructure Investment Bank (AIIB) will commence operation in mid-January 2016, the AIIB's deputy head said Thursday.

According to Chen Huan, the AIIB’s opening will be possible after India and Russia, two largest bank's shareholders after China, ratify the AIIB agreement in mid-December.

China ratified the agreement last month.

Last year, China along with 20 other countries, signed a memorandum of understanding to set up the AIIB. Following the move, dozens of other countries purportedly filed applications for membership in the regional bank.

Authorities have said that the bank aims to provide financial facilities for a chain of development projects including the construction of dams, ports, power plants and telecommunications networks across Asia.

The AIIB will be headquartered in Beijing and its lean structure will be overseen by an unpaid, non-resident board of directors which, architects say, would save it money and friction in decision-making.

Seventy-five percent of AIIB’s shares are distributed within the Asian region while the rest is assigned among countries beyond it.

Germany, France and Brazil are among the non-Asian members of the bank despite US efforts to dissuade allies from joining it. Another US ally joining AIIB is Australia but Japan has stayed away from it.

The AIIB – which is seen as an emerging rival to powerful Western-led financial institutions such as the World Bank, the Asian Development Bank and the International Monetary Fund – is feared by the White House to be a new Chinese policy to increase the influence of the world’s second largest economy at regional and international levels.

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