Three nations from European Union (EU):- France, Germany and Italy have agreed to join the China-backed Asian Infrastructure Investment Bank (AIIB) after the United Kingdom (UK) decided to join the bank.
If these western nations join the bank, the total number of the bank’s member states including India will go up to 30.
Some Key Points to Remember:
- UK was the first Western country to join the bank.
- UK is also the first nation to disregard the reservations expressed by the United States (US) which had raised concerns over banks transparency.
- India on 23 October 2014 signed an agreement to become the founding member of the China-backed Asian Infrastructure Investment Bank (AIIB).
Asian Infrastructure Investment Bank (AIIB)
- AIIB is an international financial institution proposed by China whose main aim to provide support to infrastructure projects in Asia.
- The bank is also considered as China’s move to balance the power with the WB, IMF and ADB which are being controlled/dominated by the US, EU and Japan respectively.
- It is a 50 billion dollar international investment bank and was floated in 2014 by President Xi Jingping.
- It is expected that the bank will be formally established by end of 2015.
- Bank’s headquarter will be located in Beijing.