Hockey makes big deposit in new China bank
Treasurer Joe Hockey says Australia is lining up to become a founding member of the Asian Infrastructure Investment Bank (AIIB).
The Treasurer will open the nation’s account with a $930 million deposit over the next five years, making it the sixth largest shareholder.
A total of 57 countries are expected to sign on as founding members of the bank, which was first floated by China's president Xi Jinping in October 2013.
Mr Hockey’s chance to get involved comes after extensive negotiations between the Government, China and other key partners around the world.
The Treasurer says positive effects will start almost immediately.
“It provides massive new opportunities for Australia to join with 56 other countries as founding members in building the essential infrastructure for Asia,” he said.
The Beijing-based investment fund is aimed at getting finance for infrastructure projects across Asia, usually with a mix of public and private funding.
It will operate in a similar manner to existing multilateral development banks such as the World Bank and the Asian Development Bank.
The AIIB will start with an authorised capital base of $US1 billion.