BD set to examine better options for joining AIIB

The government would form a high-powered committee to work out details on terms and conditions of the proposed US$100 billion Asian Infrastructure Investment Bank (AIIB) as it is set to join the Bank, officials said Saturday.
"We need to find out better options for joining the AIIB as a founding member. So, we need some homework to determine our expectations from the proposed China-based Asian lender," said Economic Relations Division (ERD) Secretary Mohammad Mejbahuddin.
For this, a committee comprising the Finance Division, the ERD, the Bangladesh Bank, the Banking Division and other related government agencies will be formed to work out details on the AIIB's future and Bangladesh's expectations as a shareholder, he told the FE.
Government officials said the founding members would sign the Articles of Agreement in China next year to establish the Bank formally at the end of 2015.
Earlier on October 24, Bangladesh along with 20 other countries inked a Memorandum of Understanding (MoU) in Beijing for establishing the AIIB, a China-based alternative lender to the World Bank and the Asian Development Bank.
Before signing the Articles of Agreement, Bangladesh would prepare some proposals for the founding members of the AIIB to help establish the Bank, a Ministry of Finance (MoF) official said.
Mr Mejbahuddin said the proposals of the high-powered committee would be placed before the meeting of the founding shareholders in Beijing next year for establishing the AIIB.
He said since Bangladesh needs huge investment, an alternative financing source for developing the country's infrastructure and socio-economic conditions would be very helpful for the country.
State Minister for Finance and Planning MA Mannan, who attended the MoU signing ceremony at Beijing last month, told the FE that the AIIB would be very much helpful for the country.
"I signed the MoU on behalf of Bangladesh. The meeting among the representatives of 21 nations in Beijing was very much cordial and impressive," he added.
The 21 countries, which signed the MoU are Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam.
The AIIB will be an inter-governmental regional development institution in Asia. As agreed, Beijing will be the host city for the AIIB headquarters.
The world's second largest economy China took initiative to set up the AIIB, an alternative to the World Bank and the Asian Development Bank to ensure adequate financing for developing infrastructure of the poor and developing countries, especially in the Asian region.
In early August last, Beijing had formally invited Dhaka to join the Bank. Bangladesh on September 5 participated at the Chinese government-organised 'multilateral information-sharing meeting' on the newly- proposed Bank.
According to the MoU, the authorised capital of the AIIB will be $100 billion and the initial subscribed capital is expected to be $50 billion.
Meanwhile, Australia, Indonesia and South Korea avoided signing the MoU Friday although they earlier expressed their interest to participate in the ceremony in Beijing.
After signing the MoU, Chinese Finance Minister Lou Jiwei said the consultation process of the AIIB follows the sequence of 'regional first and non-regional later.'
Meanwhile, Brazil, Russia, India, China and South Africa (BRICS) had also announced that they would form a US$50 billion multilateral bank soon.
Bangladesh has also decided to join the new initiative of the BRICS nations.
Bangladesh is already a member of the World Bank and the ADB which are helping the country for reducing poverty and upgrading infrastructure.

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