Nepal signs framework of China-led AII

Nepal signs framework of China-led AII

Nepal has signed ‘ article of agreement ’ of Asian Infrastructure Investment Bank (AIIB), becoming one of the founding members of the China-led bank.

Finance Minister Ram Sharan Mahat on Monday inked the agreement at a programme organised in Great Hall of People, China on the behalf of Nepal. Once the bank is formally established, it will give another window of resources for the country like Nepal which requires huge resources to close its funding gap, particularly in infrastructure sector.

Apart from Nepal, other 49 founding member countries across Asia, Australia, Europe and South America also signed the agreement. The other seven are expected to do so by the end of the year.

The bank has aimed to invest in the infrastructure sector of the Asian countries where resources gap in the infrastructure sector is immense.

The share capital of to be established AIIB is estimated to be $ 100 billion. But, its initial paid up capital will be $ 50 billion. Nepal is supposed to invest Rs1.60 billion in the bank.

Source: eKantipur