The Philippines has deferred signing the articles of agreement of the Asian Infrastructure Investment Bank (AIIB), which were pushed by China as a tool to facilitate regional integration in Asian.
According to a statement released by the AIIB, 50 out of the 57 representatives of the prospective founding members of the bank already signed the articles of agreement in a signing ceremony in Beijing on Monday.
The 50 countries that already signed include Australia, Austria, Azerbaijan, Bangladesh, Brazil, Brunei Darussalam, Cambodia, China, Egypt, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Iran, Israel, Italy, Jordan, Kazakhstan, the Republic of Korea, the Kyrgyz Republic, Lao People’s Democratic Republic, Luxembourg, the Maldives, Malta, Mongolia, Myanmar, Nepal, the Netherlands, New Zealand, Norway, Oman, Pakistan, Portugal, Qatar, Russia, Saudi Arabia, Singapore, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Turkey, the United Arab Emirates, the United Kingdom, Uzbekistan and Vietnam.
However, the Philippines has not yet signed the articles of agreement. The sovereign has until the end of 2015 to sign the treaty as a prospective founding member, however.
Finance Secretary Cesar V. Purisima said that, despite not signing the articles of agreement on Monday, the Philippines remains a prospective founding member, and may still sign as such before the deadline on December 31, 2015.
Purisima said the Philippines “is taking the time given to prudently consider its membership.”
He said not signing the articles of agreement during the signing ceremony on Monday, in which China’s President Xi Jinping welcomed the heads of delegations from the AIIB’s 57 prospective founding members, does not preclude the Philippines from signing before the deadline.
According to the articles of agreement of the AIIB, the Philippines will be subscribing to 9,791 shares, equivalent to $979.1 million, out of the total authorized capital stock of the AIIB, which is initially set at $100 billion.
National Treasurer Roberto Tan explained that of the $979.1-million subscription, the Philippines would have to contribute as paid-in capital in the AIIB the equivalent to 20 percent of the subscription, or $195.82 million.
The paid-in capital of 20 percent may be paid by the Philippines on installment basis within five years.
China, as a proponent of the AIIB, has pushed to make the bank operational by the end of this year to help fund infrastructure projects across Asia.
To reflect the regional character of the AIIB, the regional members or the members from Asia shall be the majority shareholders, holding approximately 75 percent of the authorized capital stock. The AIIB will be headquartered in Beijing, and its policies will be based on international best practices and the lessons and experiences of existing multilateral development banks and the private sector.