Beijing: China Monday named a former finance minister as its choice to head the Beijing-backed Asian Infrastructure Investment Bank (AIIB) which is being seen as a rival to the US and Europe-dominated banking institutions.
Former Finance Minister Jin Liqun has been formally nominated by China as its preferred candidate to head the USD 100 billion AIIB.
Jin, 65, is currently the secretary-general of the interim multilateral secretariat for establishing the China- sponsored AIIB.
He is effectively certain to be appointed as China will initially have a 26.06 percent share of the votes at the bank, giving it veto power over the choice of the president, which requires a 75 percent majority.
India by virtue of being the second largest shareholder may get the post of Vice President.
China, India and Russia are the three largest shareholders, having a 30.34 percent, 8.52 percent, 6.66 percent stake, respectively, in the newly-formed Bank. Their voting shares are calculated at 26.06 percent, 7.5 percent and 5.92 percent respectively.
The AIIB will have an authorised capital of USD 100 billion and the initial subscribed capital is expected to be around USD 50 billion.
The positions of various countries were decided based on the calculations of GDP and the purchasing power parity (PPP).
Japan along with United States have stayed away from joining the AIIB expressing reservations over its openness.
Though Beijing officially played down the AIIB, it could rival World Bank, International Monetary Fund and the ADB in scaling up funding for the infrastructure projects in Asia.
Analysts say ADB was expected to revamp its operations pumping in more capital.
Significantly, Jin was the Vice President of Japan- controlled Asian Development Bank (ADB) for over five years heading its programmes for South, Central and West Asia and private sector operations for five years.
Jin was nominated by the Chinese government based on procedures approved by finance ministers of the AIIB founding members in Beijing on June 29, state-run Xinhua news agency reported.
Jin is also former chairman of the supervisory board of the China Investment Corporation and former board chairman of the China International Capital Corporation Limited.
According to the AIIB's president election process, the president should be a citizen within the Asian region.
The election will be conducted through open and transparent procedures and based on candidates' competency.
Founding members of the AIIB should nominate their candidates before July 31 before a final list of candidates is confirmed in late August.
When the AIIB is formally established, the president will be elected from among the candidates.
