Parliament endorses Egypt’s $650 mln commitment to China AIIB development bank

Egyptian parliament has ratified on Saturday the country’s article of agreement to contribute to China-backed Asian Infrastructure Investment Bank (AIIB)’s capital.

According to the agreement signed in Beijing on June 29, 2015, Egypt plans to subscribe to $650 million of the AIIB’s total authorised capital of $100 billion.

Of the subscribed capital, Egypt is set to pay in $130 million over five years, at each annual installment.

First proposed by President Xi Jinping two years ago, the bank has become one of China’s biggest foreign policy successes. Despite the opposition of Washington, major U.S. allies such as Australia, Britain, Germany, Italy, the Philippines and South Korea have joined.

AIIB was formally established at the end of 2015 with 57 countries agreeing to be members, 19 of which are Asian, according to the bank’s website.

The capital of the bank is $100 billion, equivalent to 2⁄3 of the capital of the Asian Development Bank and about half that of the World Bank.

The AIIB’s mandate will be to fund projects both inside and outside of Asia.