Myanmar's joining in AIIB to benefit infrastructural construction

YANGON -- Myanmar's joining in signing the constitution of the China-initiated Asian Infrastructure Investment Bank (AIIB) as one of the founding members will benefit the country's infrastructural construction, Myanmar Deputy Finance and Revenue Minister Man Man Thein said on Monday.

Through the participation in signing, Myanmar will be able to borrow loans from AIIB at low interest rate for development of such infrastructure as road, bridge, and electric power which the country is in dire need, the deputy minister told Xinhua in an interview.

It will boost regional integration involving developed countries and Western countries and will benefit the world countries as well, Man Man Thein said.

U Than Lwin, vice president of a private bank giant the Kanbawza Bank, also told Xinhua that Myanmar's becoming of a member of AIIB is welcome, in addition to being a member also of the International Monetary Fund (IMF ), the World Bank (WB) and the Asian Development Bank (ADB), which can provide financial aid to the country.

Myanmar is to invest $264.5 million in the AIIB of which, 20 percent or $52.9 million will be contributed to the bank at the initial stage every year for 10 years.

Delegates of the 57 prospective founding countries of AIIB gathered Monday in Beijing for the agreement signing ceremony which will lay the legal framework for the China-initiated multilateral institution.

AIIB will have authorized capital of $100 billion. Asian countries will contribute up to 75 percent of the total capital and be allocated a share of the quota based on their economic size.

AIIB is an international financial institution, proposed by the government of China in 2013, and was launched in Beijing in October 2014. The purpose of the multilateral development bank is to provide finance to infrastructure projects in the Asia region.

The Beijing-headquartered bank will start operation at the end of the year.