The finance ministry of China has announced on Monday June 29, 2015, that the nation will hold more than 25% of the votes in AIIB, that is, the Asian Infrastructure Investment Bank, giving it a veto in various major decisions. However, Beijing has insisted that it will not possess any such power.
Fifty-seven nations have sent their delegates to Beijing to witness the signing of the agreement for AIIB, which is supposed to stand as a competitor to the Asian Development Bank as well as the World Bank. The ministry stated on its website that fifty countries have signed the agreement including Australia, Iran, Britain and Georgia. Seven countries, namely Thailand, Kuwait, Denmark, Malaysia, Holland, Philippines, and South Africa held back from signing the agreement as they do not have the domestic approval till now. However, these countries are expected to sign later this year.
The finance ministry of china also stated that the nation would have a total of 26.06% of the voting rights in AIIB giving it a veto on votes. However, China has maintained that it will not have veto powers. The U.S. possess a limited veto power in the World Bank. The vice finance minister of China, Mr. Shi Yaobin said in an press meet that that China did not require a veto in the bank and its stake and voting share is a natural result of the current rules. The minister also said that the initial shares and the voting rights of China and other establishing members would be diluted gradually with other nation joining the bank.