After having approved plans to buy a stake in the China-led Asian Infrastructure Investment Bank (AIIB) earlier this October, the German government has finally lived up to its commitment by contributing $4.5 billion, making itself the fourth largest shareholder after China, India and Russia.
According to the German Embassy in China, Germany deposited its instrument of ratification of the AIIB Articles of Agreement at China’s Ministry of Foreign Affairs on December 21.
Germany will partner with the AIIB closely for the fulfillment of its mandate and tasks. This includes compliance with international standards, the German Embassy said in a statement.
Germany will also have an executive director from Germany based in Beijing, the Embassy said.
AIIB currently has 57 prospective founding countries and an authorized capital of $100 billion.
AIIB was formally established on December 25 and is expected to commence operations early this year, Xinhua News Agency reported. The establishment came after 17 funding members of the AIIB ratified an agreement.
“In regular years, given $100 billion in registered capital, I think every year I expect to do [lend] probably $10 billion to $15 billion a year, for the first five to six years,” said Jin Liqun, the president-designate of the AIIB in a public statement in mid-December.
Jin said the first board meeting will be held in January, and the first lending may take place in the second half of 2016.
In terms of future investment, Jin said the AIIB will emphasize projects that have a strong connection to infrastructure and Internet development. He said AIIB’s support on these projects will propel the merging of traditional industry with Internet technology.