Nepal signs AIIB constitution


Nepal Foreign Affairs (KATHMANDU, 29 June) – Nepal has signed an Articles of Agreement of the Chinese-led Asian Infrastructure Investment Bank (AIIB) on Monday, becoming one of the founding members of the Bank.

The agreement  was signed in Beijing on Monday, with representatives from the AIIB’s 57 founding members.

Finance Minister Ram Sharan Mahat on Monday inked the agreement at the Great Hall of People on behalf of Nepal. Altogether 49 founding members from Asia, Australia, Europe and South Africa signed the agreement on the occasion.

The bank has aimed to invest in the infrastructure sector of the Asian countries, which are in the dire need of resources for enhancing development-related projects.

The share capital of the AIIB is estimated to be USD 100 billion. But its initial paid-up capital will be USD 50 billion.

Nepal is supposed to invest Rs. 1.60 billion in the bank. Nepal had signed an MoU in Beijing in November last year to become the founding member of AIIB.

Nepal will seek funds from AIIB in reconstruction of physical infrastructures which were severely damaged by the massive April 25 and May 12 earthquake, Nepal’s Finance Minister Ram Sharan Mahat said.

The AIIB is expected to be established by the end of 2015 and economic analysts said that Nepal could be its first customer of the AIIB.

Nepalese economic analyst are of the view that the AIIB’s fund will be significant in the earthquake-stricken Nepal’s rebuilding when the bank comes into operation.

Beijing’s proposal setting up the AIIB has attracted wide support from Britain, France, Australia and South Korea – the allies of US.

The bank is intended to invest in railways, cargo ports and other trade links. The U.S. government is against the AIIB, which Washington perceives as the institution that undercuts the existing situation- World Bank.

 

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