New Zealand formally joins Asian Infrastructure Investment BankFinance
New Zealand has formally became a member of the Asian Infrastructure Investment Bank (AIIB) Finance Minister Bill English says.
Ratification by members with 50 percent of the capital of the AIIB is needed for it to establish operations. New Zealand’s ratification will contribute to the organisation reaching the 50 percent threshold needed for the AIIB to establish operations. This is expected to take place by mid-December.
This follows the passage of the International Financial Agreement Amendment Act here in New Zealand in November.
“Being the 9th country to formally become a founding member is the next step on from our early engagement with the AIIB,” Mr English says.
“New Zealand was the first developed western nation to join negotiations to set up the AIIB, and our membership will enhance our already strong economic, trade and investment links with the Asian region.
"Through our role in establishing the AIIB, we have been able to ensure it has strong governance, environmental and social policies, and transparency – so we have good reason to expect it to deliver efficiently and effectively.
“New Zealand is benefitting from the rapid and sustained economic development across Asia. For this to continue, the region needs to address constraints posed by infrastructure bottlenecks,” he says.
The AIIB will have around NZ$150 billion (US$100 billion) of initial capital to promote sustainable development in the region.
Its infrastructure investments will include improving transportation links, providing sanitation and clean drinking water, and supporting cleaner and more sustainable energy.
The AIIB is expected to begin operations in January 2016.