Australia to join and contribute $930 million for Asian Infrastructure Investment Bank, says Treasurer Joe Hockey

According to The Australian Financial Review today, Australia will become a founding member of China's Asian Infrastructure Investment Bank, sealing a hard-fought internal victory for Treasurer Joe Hockey and Trade Minister Andrew Robb.

Following objections by the United States and Prime Minister Tony Abbott, the Australian government has rethought its initial opposition and will now join the bank, contributing $930 million in the process.

This paid-in-capital will be contributed over five years and make Australia the sixth largest shareholder.

The AIIB will have paid-in capital of $US20 billion ($25.2 billion) with total authorised capital of $US100 billion, Mr Hockey said.

Mr Hockey argued the Asia Infrastructure Investment Bank will create opportunities for Australian companies to sell more commodities such as iron ore.

"Joining the AIIB presents Australia with great opportunities to work with our neighbours and largest trading partner to drive economic growth and jobs," he said.

"The AIIB will work closely with the private sector, paving the way for Australian businesses to take advantage of the growth in infrastructure in the region."

"The governance of the AIIB will be based on best practice, ensuring that all members will be directly involved in the direction and decision making of the bank in an open and transparent manner," he said.

Mr Hockey will attend the Articles of Agreement signing ceremony at the Great Hall of the People, Beijing on Monday, June 29.

Ref: http://www.afr.com/news/politics/australia-to-join-asian-infrastructure-investment-bank-says-joe-hockey-20150624-ghwevx