Chinese ex-FM to be AIIB chief

• China on Monday nominated one of its former Finance Minister to head the Beijing-backed Asian Infrastructure Investment Bank (AIIB).
• Former Finance Minister Jin Liqun has been formally nominated by China as its preferred candidate to head the $100 billion AIIB.
• It has been seen as a rival to the U.S. and Europe-dominated banking institutions.

Jin Liqun:-

• He(65) is currently the secretary-general of the interim multilateral
• secretariat for establishing AIIB.
• As China will initially have a 26.06 per cent share of the votes at the bank, he is effectively certain to be appointed with majority of 75 percent.
• Jin was the Vice President of Japan- controlled Asian Development Bank (ADB) for over five years heading its programmers for South, Central and West Asia and private sector operations for five years.
• He is also former chairman of the supervisory board of the China Investment Corporation and former board chairman of the China International Capital Corporation Limited.

Funding of AIIB:-

• The AIIB will have an authorized capital of USD 100 billion and the initial subscribed capital is expected to be around USD 50 billion.

Shareholders of AIIB:-

• China, India and Russia are the three largest shareholders, having a 30.34 percent, 8.52 per cent, 6.66 per cent stake, respectively, in the newly-formed Bank.
• Their voting shares are calculated at 26.06 per cent, 7.5 per cent and 5.92 per cent respectively.
• The positions of various countries were decided based on the calculations of GDP and the purchasing power parity (PPP).

Election of president of AIIB:-

• According to the AIIB’s president election process, the president should be a citizen within the Asian region.
• The election will be conducted through open and transparent procedures and based on candidates’ competency.
• Founding members of the AIIB should nominate their candidates before July 31 before a final list of candidates is confirmed in late August.
• When the AIIB is formally established, the president will be elected from among the candidates.
• India being the second largest shareholder may get the post of Vice President.

Funding of AIIB:-

• The AIIB will have an authorized capital of USD 100 billion and the initial subscribed capital is expected to be around USD 50 billion.