The Ministry of Public Finance (MFP) got the Government’s approval to send a letter to the Asian Infrastructure Investment Bank (AIIB) expressing Romania’s official interest to become its member, a press release informs.
The China-led development bank is seen as a rival to the World Bank, led by the United States.
The AIIB was legally established on end-December 2015 as a way of financing regional development. The bank is focusing on financing projects in power, transportation, and urban infrastructure in Asia.
Despite opposition from Washington, U.S. allies including Australia, Britain, German, Italy, the Philippines and South Korea have agreed to join the Asian Infrastructure Investment Bank (AIIB) in recognition of China’s growing economic clout.
The AIIB is expected to lend USD 10 billion – USD 15 billion a year for the first five or six years.
The bank has 37 member states (all “Founding Members”) and was proposed as an initiative by the government of China. The initiative gained support from 37 regional and 20 non-regional Prospective Founding Members (PFM), all of which have signed the Articles of Agreement that form the legal basis for the bank.
The capital of the bank is USD100 billion, equivalent to two-thirds of the capital of the Asian Development Bank and about half that of the World Bank.