Orgcn 2014 17 memorandum of understanding to

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“21 Asian Countries sign MOU to set up AIIB,” China.org.cn, 201417“Memorandum of Understanding to Establish the AIIB, AIIBank.org, 2015FoundingMembers'Minimum Total55%Non7borrowingMembers'Maximum Total20%Individual Non7Founding MemberMaximum7%18%Non7FoundingMembers'Maximum Total45%
ENSURING SUSTAINABILITY IN THE ASIAN INFRASTRUCTURE INVESTMENT BANK AND THE NEW DEVELOPMENT BANK 7 Japan and the United States, choosing not to participate because of geo-political concerns.18Voting Shares and Organization The voting power of the AIIB participating members is not yet defined and information remains unclear; however, it is believed that China will have a more substantial voting share than any other member, likely no less than 49% of the total shares.19In fact, of the expected capitalization of US$ 100 billion, the Chinese government is expected to furnish US$ 50 billion and other institutions and private lenders are expected to contribute the remaining US$ 50 billion.20Regarding the structural organization, little is known on the AIIB, however, it has been reported that Jin Liqun, a Chinese former Vice-president of the Asian Development Bank (ADB), has been appointed to head the AIIB.21Last-Minute Additions to the AIIB Founding Members It is interesting to note the flurry of activity as the deadline for those seeking to be prospective founding members at the AIIB neared. Applications were to be received by March 31, 2015 and until March 2015 the list of prospective founding members did not span far beyond the 21 original, MOU signatories. However, on March 12, 2015, the United Kingdom announced that it would join the AIIB, which was instrumental in opening the door for other developed economies to follow suit. Officials from the UK stated that by joining the bank as a founding member, the UK would be able to shape the new institution from the inside. British Chancellor George Osborne also stated that Britain would help ensure that the AIIB uphold high standards of governance, joining discussions with other founding members to outline the institution’s governance and accountability structures.22Following the addition of the UK as a founding member, European economic powers France, Germany, and Italy joined the AIIB in mid-March 2015. With the move of four influential European nations joining the AIIB, others quickly followed suit in support of the bank, which included South Korea, Switzerland, Luxembourg, and, key US ally, Australia. On April 15, 2015, the AIIB released its final, approved list of founding members, which includes over one-quarter of the world’s countries (57, to be exact), and 16 of the 20 largest economies (the US, Japan, Canada, and Mexico being the four holdouts).2318“UK Support for China-backed Asia Bank Prompts US Concern,” BBC News, 2015 19“Australia Shifts Stance on China-led Development Bank,” Financial Times, 2015 20“China, 20 Other Countries Initiate new Asian Bank,” Daily Mail, 2014 21“Jin Liqun: China’s Helmsman to Establish AIIB,” Devex, 201422“European Giants Side with UK in Chinese World Bank Row With US,” The Telegraph, 201523“China’s AIIB: The Final Tally,” The Diplomat, 2015

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