Hungary joins Asian Infrastructure Investment Bank
Hungary has joined the Asian Infrastructure Investment Bank as the documentation process had been finalized and the initial capital instalment had been transferred to the institution, Minister for National Economy Mihály Varga said, following the annual general meeting of the Beijing-based financial institution held in South-Korea.
One of the largest multilateral development banks in the world, established with a start capital of USD 100bn, AIIB opened the way for aspiring stakeholding countries to join the bank in July 2016. Following talks on membership conditions that had been completed fast and with a favourable outcome, Hungary’s National Assembly adopted the international agreement required for gaining membership in May 2017. During the general meeting, Minister Mihály Varga, as AIIB Governor representing Hungary, handed over membership documentation to AIIB President Jin Liqun.
Hungary is the second country to join the AIIB from the Central and Eastern European region, the Minister noted. Hungary has acquired a stake in the bank that corresponds with Hungary’s economic weight – therefore slightly larger than that of Portugal, for example – and as a member of the group of countries headed by the United Kingdom at the board of directors Hungary can effectively participate in the formation of the bank’s strategy and objectives, he stressed. The Minister expects that the membership will help expand Hungary’s international financial and foreign trade network of relations in the dynamically developing regions of the world, which will bolster economic growth and corporate competitiveness.
The China-initiated AIIB was established with the aim of easing the enormous financing demand, some USD 1000bn per year, of the Asia-Pacific region through offering and mobilizing competitive instruments. The bank has proven the adequacy of initial goals, as the value of projects financed by the bank since the onset exceeds USD 2bn. At the general meeting, stakeholders – among them Hungary – have vowed to dynamically increase this amount.
Source: Ministry for National Economy