China-backed AIIB to open for business in mid January

Beijing: China-sponsored Asian Infrastructure Investment Bank (AIIB) in which India is a founder member along with other 56 countries will open in mid-January next year, an official has said.

Chen Huan, who is in charge of preparations for the USD 100 billion-bank's launch, said AIIB will meet the requirements for opening at the end of December.

According to an agreement, the bank will be eligible for opening after no less than ten countries' legislatures passed the AIIB operational framework and their shares shall be no less than half of the total, Chen said.

So far, 12 countries' legislatures have passed the framework, but their shares are below 50 percent of the total.

India and Russia, holding relatively larger shares, are expected to finish their legislative procedures in mid-December, Chen said.

China, India and Russia are the three largest shareholders, taking a 30.34 percent, 8.52 percent, 6.66 percent stake respectively in the newly-formed bank. Based on the share holding, India is expected to get the post of the Vice President.

China has already nominated its former finance minister Jin Liqun as the first President of AIIB which is addition to the BRICS Development Bank, headed by eminent Indian banker K V Kamath.

China's top legislature in early November ratified the AIIB operational framework.

The China-backed multilateral development institution is tasked with financing infrastructure construction across Asia.

The Beijing-based bank could rival World Bank, International Monetary Fund and the Asian Development Bank in scaling up funding for the projects in Asia.

With authorised capital of USD 100 billion, the AIIB will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare, state-run Xinhua news agency reported.

Among AIIB's 57 prospective founding members, 54 had signed the agreement till October and the other three are expected to sign before the end of this year. All prospective members should have their legislatures ratify the agreement before the end of next year to formally become founding members.