SINGAPORE - Singapore and 49 other countries have signed the Asian Infrastructure Investment Bank (AIIB) Articles of Agreement (AoA) on Monday.
Represented by Senior Minister of State for Finance and Transport Josephine Teo, Singapore signed the AoA which stated it will US$250 million (S$338 million) or 0.25 per cent of the AIIB's total authorised capital of US$100 billion, said the Ministry of Finance in a statement today.
Of the subscribed capital, 20 per cent or US$50 million will be paid in over five years. The remaining 80 per cent or US$200 million of callable capital does not need to be paid in, except when decided by AIIB members in extraordinary circumstances. This is similar to the practice in other multilateral financial institutions.
Mrs Teo said Singapore benefited from the assistance of multilateral financial institutions such as the World Bank and the Asian Development Bank during the early years of development .
"We are keen to support further economic development in the region, by working with all founding members to build up the AIIB as a first-class multilateral financial institution.
"This will provide new opportunities for our businesses and also promote sustainable growth in Asia", said Mrs Teo.
The AoA is a governing document that outlines the Bank's objectives and general principles for its management and operations.
Following the signing of the AoA, Singapore will seek Parliamentary approval to ratify the AoA. Countries will become official members of the AIIB upon ratification of the AoA.
The AIIB is expected to begin operations in 2016.