Egypt signed on Monday the founding agreement for the nascent Asian Infrastructure Investment Bank in Beijing.
Egypt’s ambassador to China, Magdy Amer, signed the 57-member agreement at the Great Hall of the People.
Chinese President Xi Jinping is scheduled to make a speech on the occasion, on Monday, attended by signing parties.
The bank’s creation came as a result of a Chinese initiative launched in October 2013. In an article circulated by Chinese media, China’s Finance Minister Lou Jiwei described the bank as a multi-national financial institution adopting high standards and works towards the reinforcement of regional infrastructure and economic development in a way that could stimulate long-term growth for the global economy with infrastructure investments.
Jiwei pointed out that the bank’s role would be complementary to that of other international financiers, such as the World Bank and the Asian development Bank, seeking to bridge financing gaps for world infrastructure undertakings.
The Beijing-based bank will have an initial capital of US$50 billion, which is expected to increase to US$100 billion. Its founding is expected to be fully attained by the end of 2015, after legislative approval from signing countries.
Beijing had announced it will maintain a veto right during the bank’s operations, citing the fact that it would hold an expected 25 percent share as a minimum.
Arab signatories to the bank’s agreement are Kuwait, Oman, Qatar, Saudi Arabia, Jordan and, most recently, Egypt. A majority of Asian countries, some European states, Latin American countries and Australia are also parties to the agreement.
Edited translation from MENA
