Showing posts with label AIIB. Show all posts

Feb 4, 2016

DJ Pandian appointed AIIB Vice-President

2/04/2016
DJ Pandian appointed AIIB Vice-President
Former IAS officer D J Pandian has been appointed vice-president and chief investment officer (CIO) of Beijing-based Asian Infrastructure Investment Bank (AIIB).
He is retired IAS officer of Gujarat cadre and had served as chief secretary of the state. He also had worked on deputation with the World Bank. He was also the MD of Gujarat State Petroleum Corporation (GSPC).


About AIIB 
With authorised capital of USD 100 billion and subscribed capital of USD 50 billion, AIIB will invest in sectors such as energy, transportation, urban construction and logistics as well as education and healthcare. China, India and Russia are the three largest shareholders, taking 30.34 per cent, 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.

Jan 18, 2016

Dinesh Sharma elected to board of directors of AIIB

1/18/2016
Dinesh Sharma elected to board of directors of AIIBIndia’s Dinesh Sharma has been elected to the board of directors of the China-sponsored Asian Infrastructure Investment Bank (AIIB).
Dinesh Sharma, Additional Secretary of Ministry of Finance has been elected to the 12-member board for which a secret ballot was held. This will be the first board of directors for the new bank in which 57 members joined as founding members.
The inaugural meeting of the board of the governors of the AIIB also held in Beijing after its formal launch. The meeting approved by-laws, rules and codes of conduct for the bank.
It should be noted that Union Finance Minister Arun Jaitley is the designated governor of the AIIB from India. However he was represented by Mr. Sharma at the meeting.
Presently, Dinesh Sharma is serving as Additional Secretary of Union Ministry of Finance.

About AIIB 
  • With authorised capital of $ 100 billion and subscribed capital of $ 50 billion, AIIB will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare.
  • China is the largest shareholder with 26.06% voting shares. India is the second-largest shareholder with 7.5% followed by Russia 5.93% and Germany with 4.5%.
  • India whose total capital subscription amounts to $8.37 billion has paid first instalment of $334.70 million to the paid-in capital stock of the bank. 20% of the subscription is to be paid in five equal instalments.
  • The election of India to board of directors of the AIIB is expected to provide significant role for it as it is the forum that approves the loans for projects.

Nov 4, 2015

China’s Parliament ratifies AIIB agreement

11/04/2015
China’s Parliament has ratified the Asian Infrastructure Investment Bank (AIIB) agreement which establishes the legal framework for the Bank.
The ratification by China, which is the bank’s largest shareholder is considered significant step closer to the AIIB’s formal establishment.
Earlier in June 2015, 54 founding members of the bank had signed the 60-article agreement provides the legal framework for Institution of AIIB. While, the remaining members are expected to sign before the end of 2015.
It is mandatory for all prospective members of AIIB ratify the agreement before the end of 2016 by their respective top legislatures to formally become its founding members.
It should be noted that India is also a founder member of AIIB which is tasked to finance infrastructure development projects across Asia.

Asian Infrastructure Investment Bank (AIIB)

  • Established to finance infrastructure projects including energy, transport and infrastructure projects in Asia.
  • AIIB is seen as a rival to the World Bank and Asian Development Bank (ADB) which managed by most prominent countries like US, Japan and European etc.
  • Headquarters: It will be operational by end of 2015.
  • Authorized capital: It will be of 100 billion US dollars. The initial subscribed capital will be around 50 billion US Dollar and the paid-in ratio will be 20 per cent.
  • Regional character of the Bank: Its regional members (Asian) will be the holding around 75 percent of shares i.e. they will be majority shareholders.
  • They have been allocated their capital share on quota basis i.e. based on their economic size.
  • Voting share: for each member country it is based on the size of their economy and not on authorised capital share to the Bank.
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