The New AIIB Starting Operations By The End Of The Year
The Chinese-led Asian Infrastructure Investment Bank is the top story of the financial world in 2015. The bank is expected to start its operations by the end of 2015, with more than 40 countries applied already to be founding members. All of the world’s leading economies have backed up the new Chinese project, except for United States of America and Japan.
The AIIB has secured a 50 billion U.S. dollars of startup capital, a may eventually issue capital of 100 billion U.S. dollars. The Beijing bases powerhouse will undeniably cause a shift in the market, with International Monetary Fund, The World Bank and the Asian Development Bank under pressure from the new lender. China will establish itself as the financial force in the region, as it holds the dominant position in the AIIB. The bank will finance the infrastructural projects in the growing infrastructure industry in Asia, taking a bite of the estimated 8 trillion U.S. dollars demand in infrastructural projects by 2020.
The deadline for the application of founding members has passed on March 31st, with virtually all powerful economies applied. The perhaps unexpected application of practically all traditional allies of the United States, such as Great Britain, Germany, France, etc. proves the confidence that world leaders have in China is high. The decision of Washington and Tokyo not to join the AIIB has been criticized by numerous economic experts, dubbing the decision “misdirected” and “nonrealistic”.