Out-Law / Your Daily Need-To-Know

Australia, Russia, Denmark, Brazil and the Netherlands apply to join AIIB

30 Mar 2015, 3:38 pm

Australia, Russia, Denmark, Brazil and the Netherlands are the latest countries to apply to join the Asia Infrastructure Investment Bank (AIIB), although Australia said that it had identified issues that would have to be resolved before it joined.

Australian Prime Minister Tony Abbott said that he intends to sign a Memorandum of Understanding that will "allow Australia to participate in negotiations to set up the bank, as a prospective founding member.

"Working with other key multilateral institutions such as the World Bank and the Asia Development Bank, the AIIB has the potential to play a valuable role in addressing infrastructure needs and boosting economic growth in the region with potential benefits for Australia."

There are, however "key issues to be resolved … [including] the bank's board of directors having authority over key investment decisions, and that no one country control the bank," the statement said.

The Chinese Ministry of Finance has announced that Denmark has applied to join the AIIB, Reuters said. If the decision is approved, Denmark will become a founding member of the bank on April 12, Reuters said.

Russia, the Netherlands and Brazil also announced plans to join the bank on 28 March, according to a separate Reuters report.

The deadline to apply for membership of the AIIB is 31 March 2015.

Korea and Turkey, Germany, France and Italy have also applied to join the bank during the final month before the deadline of 31 March. The UK announced its decision to join on 12 March.

When the UK announced its plans to join the bank on 12 March, the US told the Financial Times that this was part of a trend of "constant accommodation" to China.