Philippines joins Asian Infrastructure Investment Bank in the last minute

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asian_infrastructureThe Philippines in a last-minute decision is officially joining the China-led Asian Infrastructure Investment Bank (AIIB) before the deadline by the end of this year, becoming its last member, the government in Manila announced on December 30.

“The Republic of the Philippines will be signing the Articles of Agreement of the Asia Infrastructure Investment Bank before year-end, joining the newly created multilateral institution aimed at boosting infrastructure development and connectivity,” the Philippine Department of Finance said in a statement.

The authority was just given two days before the deadline for prospective founding members to sign with AIIB.

The Philippines will be the last of the 57 founding members which have signified intention to join the AIIB early this year. The AIIB pact came into force on Christmas Day with the ratification of the agreement by 17 countries.

The fund will have a paid-in capital of $20 billion and total authorised capital of $100 billion and be a Chinese-dominated alternative to the Japan-led Asian Development Bank and other international financing bodies, namely the US-led World Bank and the Europe-dominated International Monetary Fund. The Philippines said its indicative paid-in capital would be $196 million, payable over five years.

The US and Japan have opted out of the AIIB for governance concerns, while the Philippines has weighed its options considering its ongoing territorial dispute with China.

However, the Philippines’ decision to join the AIIB is expected to help expand the market for infrastructure-related industries, boosting job creation and business growth. President Benigno Aquino, who will leave office after an election next year, had the final say on joining.

The AIIB will hold its opening ceremony in Beijing on January 16-18. Members have until December 2016 to complete domestic approval processes and pay the initial tranche of their paid-in capital.

The Philippines will join all other ASEAN countries, several Central Asian and Middle Eastern countries and other major economies such as Australia, Germany, France, UK, South Korea, Russia, Egypt, Turkey and Brazil in signing the AIIB’s founding articles.

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Reading Time: 2 minutes

The Philippines in a last-minute decision is officially joining the China-led Asian Infrastructure Investment Bank (AIIB) before the deadline by the end of this year, becoming its last member, the government in Manila announced on December 30.

Reading Time: 2 minutes

asian_infrastructureThe Philippines in a last-minute decision is officially joining the China-led Asian Infrastructure Investment Bank (AIIB) before the deadline by the end of this year, becoming its last member, the government in Manila announced on December 30.

“The Republic of the Philippines will be signing the Articles of Agreement of the Asia Infrastructure Investment Bank before year-end, joining the newly created multilateral institution aimed at boosting infrastructure development and connectivity,” the Philippine Department of Finance said in a statement.

The authority was just given two days before the deadline for prospective founding members to sign with AIIB.

The Philippines will be the last of the 57 founding members which have signified intention to join the AIIB early this year. The AIIB pact came into force on Christmas Day with the ratification of the agreement by 17 countries.

The fund will have a paid-in capital of $20 billion and total authorised capital of $100 billion and be a Chinese-dominated alternative to the Japan-led Asian Development Bank and other international financing bodies, namely the US-led World Bank and the Europe-dominated International Monetary Fund. The Philippines said its indicative paid-in capital would be $196 million, payable over five years.

The US and Japan have opted out of the AIIB for governance concerns, while the Philippines has weighed its options considering its ongoing territorial dispute with China.

However, the Philippines’ decision to join the AIIB is expected to help expand the market for infrastructure-related industries, boosting job creation and business growth. President Benigno Aquino, who will leave office after an election next year, had the final say on joining.

The AIIB will hold its opening ceremony in Beijing on January 16-18. Members have until December 2016 to complete domestic approval processes and pay the initial tranche of their paid-in capital.

The Philippines will join all other ASEAN countries, several Central Asian and Middle Eastern countries and other major economies such as Australia, Germany, France, UK, South Korea, Russia, Egypt, Turkey and Brazil in signing the AIIB’s founding articles.

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