China led the formulation of a deal for the establishment of an international bank that will fund infrastructure projects aimed at promoting and supporting economic growth in Asia, reported Business Standard.
A Memorandum of Understanding (MoU) on the Asian Infrastructure Investment Bank (AIIB) was signed by representatives from 21 Asian countries led by China during a special ceremony on Friday in the Great Hall of People in Beijing.
The countries, hitherto called founding members, include Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam.
The AIIB is poised to be Asia's counterpart to the World Bank and the International Monetary Fund, and is hoped to reduce the reliance of Asian countries on these funding institutions.
Asian economic leaders Japan and South Korea did not send representatives to the signing ceremony, according to the New York Times.
Furthermore, the United States, along with allies such as South Korea and Austrralia, had earlier opposed the initiative, saying it is aimed at undermining the World Bank and the Asian Development Bank, which are dominated by the United States and Japan.
Speaking during the ceremony, Chinese Finance Minister Lou Jiwei said that all countries with an interest in Asia's development is welcome to join the AIIB.
"AIIB is an open, inclusive institution. All countries that are committed to regional development in Asia and global economic development can join AIIB. We believe that there will be more countries joining it in the future," the official said.
The MoU stipulates that the authorized capital of the AIIB is $100 billion, while the initial subscribed capital is $50 billion. China has promised to shoulder much of the initial capital, according to the New York Times.