Hockey signs up to Asian investment bank

Image Source..

Treasurer Joe Hockey has formally signed up Australia to the $US100 billion ($A131 billion) Asian Infrastructure Investment Bank.

Mr Hockey was in Beijing for the official signing ceremony with other foundation countries.

“Australia becomes the first nation to sign the Articles of Agreement of the #AIIB in Beijing’s Great Hall of People,” he tweeted.

The Chinese initiative aims to satisfy an estimated $US8 trillion ($A10.50 trillion) infrastructure shortfall in Asia over the next 10 years.

Australia will contribute about $930 million in upfront capital to the bank over the five years and be the sixth-largest shareholder.

China will hold a 30.34 per cent stake and 20.06 per cent of voting rights.

Mr Hockey said last week that after intense negotiations the government had been able to clear up its outstanding concerns over the structure of the China-based bank and was satisfied that governance arrangements would ensure there was appropriate transparency and accountability.

Some 57 countries are the founding members of the AIIB and were present to sign the articles of association for its establishment setting up the new institution in the Great Hall of the People on Monday.

The world’s largest and third largest economies, United States and Japan, have  so far declined to join.

Read More..

Source by theaustralian