Politically neutral Germany gets key position in China led AIIB

In the China led AIIB, Germany will get key position of a vice president and Chief Operating Officer. Both functions will be done by the same person. As per the information published by South China Morning Post, there will be four other vice presidents besides the German nominee. The other vice presidents will be from India, South Korea, UK and Indonesia.

India as the second largest share holder of the bank after China will have the Chief Financial Officer as well; as its vice president will be the CFO.  

Britain who shocked its evergreen ally US while joining the AIIB will get a vice president post and he will be in charge of communications. UK is the ninth largest share holder in AIIB.

Chinese Finance Minister Lou Jiwei was named chairman of the Board of Governors.

Germany is notable for its relatively silent role in political issues despite being the powerhouse economy of Europe. Similarly, Germany has openly supported giving Market economy status to China in the WTO. Germany is the fourth largest share holder of AIIB behind Russia.

 Interestingly, China’s strategic ally Russia has not allocated any important position. But it will be compensated by good investment using the funds from the AIIB. Indications are that the AIIB will finance the Chinese proposed land connectivity projects which are going through Russia and its neighborhood.

According to sources, AIIB as a multilateral body known as an alternative for the Brettonwoods institutions will start delivering loans soon. Chinese media sources revealed that the first loans will be provided to projects related to China sponsored ‘Road and Belt’ initiatives.  

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Tags : aiib and india