WELLINGTON: New Zealand is going to become a founding member of the Asian Investment Bank. It’s a China-led initiative aimed at providing infrastructure investment in the region.
New Zealand Finance Minister Bill English says the bank’s initial capital will be close to $US100 billion ($A129 billion). It will be financed by individual country contributions, relative to their size.
New Zealand will put in about $NZ125 million ($A112.7 million), paid over five years. ‘Increased infrastructure investment will enhance the Asian region’s growth, and that will be good for New Zealand,’ Mr English said.
‘New Zealand was the first western developed nation to join negotiations to set up the bank, and our membership will enhance our already strong economic, trade and investment links with the Asian region.’
Foreign Minister Murray McCully says it makes sense to contribute to infrastructure investment in the region. ‘Asia is driving global growth and it is full of opportunities for New Zealand,’ he said.
‘To ensure we achieve further growth and that more people in the region are lifted out of poverty, Asian needs to address continuing constraints posed by infrastructure bottlenecks.’
There will be a formal signing ceremony in Beijing later this month and the bank is expected to begin operations before the end of the year.
