The Ministry of Public Finance (MFP) is going to pay USD 6.12 million this year for Romania’s accession to the Asian Bank for Infrastructure Investments (AIIB), according to a draft law published on the institution website.
Under the memorandum approved by the Romanian Government on 21 February 2017, FinMin sent the letter requesting the admission of Romania as a member of the institution and accepting the proposed financial conditions. Thus, it was agreed that Romania to subscribe 1,530 shares, representing a total capital value of USD 153 million, of which USD 30.6 million is share capital, payable in five equal annual installments,” the statement of reasons reads.
Romania has to pay the first annual installment no later than 31 December 2018.
”It is envisaged the payment by transfer in 2018 of the first installment of USD 6.12 million equivalent to RON 24,847,200”, MFP informs.
Romania became a member of the Asian Infrastructure Investment Bank (AIIB) following the decision taken on 13th of May 2017 by the Board of Governors of the Asian financial institution.
According to Romanian authorities, this decision will offer the country and the domestic companies the opportunity to access the Bank’s financial mechanisms to diversify cooperation with the Asian partners in areas such as energy, urban development, transports, information technology and agriculture.
Along with Romania’s admission, by the AIIB decision, Bolivia, Chile, Cyprus, Greece and Samoa have also been granted membership to the Asian Infrastructure Investment Bank in Bahrain.
AIIB is a Beijing-based multilateral development banking institution set up in 2016, which primarily seeks to support economic and social development in Asia by funding infrastructure projects. According to its constituent documents, the institution may provide funding to any member or entities on the territory of its members. The European AIIB member countries shall include France, Germany, the United Kingdom, the Netherlands and Poland.