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Brazil accepts China's invitation to participate in Asian investment bank

Country is a founding member of AIIB, which has initial capital of US $ 50 billion. Objective of the institution is to finance infrastructure

BY LUIZA DAME

27.03.2015 20:55 / UPDATED 03/27/2015 20:56

BRASILIA - THE PLANALTO PALACE ANNOUNCED ON FRIDAY THAT THE BRAZILIAN GOVERNMENT ACCEPTED THE INVITATION OF CHINA TO PARTICIPATE AS A FOUNDING MEMBER OF THE ASIAN INFRASTRUCTURE INVESTMENT BANK (AIIB).

ACCORDING TO A STATEMENT, PRESIDENT ROUSSEFF SAID THAT BRAZIL HAS "AN INTEREST TO PARTICIPATE IN THIS INITIATIVE," WHOSE GOAL IS TO ENSURE FINANCING FOR INFRASTRUCTURE PROJECTS IN ASIA.

THE BANK HAS AN INITIAL CAPITAL ESTIMATED AT $ 50 BILLION AND WILL BE ATTENDED BY EUROPEAN COUNTRIES LIKE UK, FRANCE, GERMANY AND ITALY. IN TOTAL, 65 MEMBER COUNTRIES, 47 ASIAN AND 18 OTHER CONTINENT

SOURCE WRITINGHTTP://OGLOBO.GLOBO.COM/ECONOMIA/BRASIL-ACEITA-CONVITE-DA-CHINA-PARA-PARTICIPAR-DE-BANCO-DE-INVESTIMENTO-ASIATICO-15722247

BRAZIL WILL BE NEW DEVELOPMENT BANK MEMBER LED BY CHINA

POSTED ON 28.03.2015 AT 14H21 | UPDATED 03/28/2015 AT 14:30

The Folhapress

Brazil will be member of the new Asian Development Bank, a Chinese initiative that is now more than 30 countries on board. The announcement was made on Friday night (27), a short note from the Presidential Palace.

"The Brazilian government accepted the invitation of the PRC to participate as a founding member of the Asian Investment Bank Infrastructure (AIIB), informs the government statement.

The statement said President Dilma Rousseff "announced that Brazil's interest to participate in this initiative, which aims to secure funding for infrastructure projects in the Asian region."

It was not informed what the initial investment in Brazil.

The announcement cause some surprise, taking into account that until your Eve Brazilian diplomacy was still divided on the benefits of embarking on the project. First, because Brazil is already part of the newly created Bank of the BRIC countries, which will also be focused on infrastructure investment. In addition, the bank is Asian.

But after the largest European economies announced the membership and China reiterated that the bank is "open to all countries", Brazil's calculation was that it is better to be inside than outside. The deadline for membership as a founding member wins next Tuesday (31).

The decision to enter the bank of Europe, Australia and South Korea, despite strong resistance from the US, is one of the greatest victories of overactive "economic diplomacy" of China, which has the AIIB one of his flagship.

The bank was launched in October by China with 20 other countries, plus a Beijing initiative to counter US power in multilateral institutions like the World Bank and the International Monetary Fund.

It is expected that the AIIB operational in the end of 2015, with an initial capital of US $ 50 billion (£ 161 billion), reaching US $ 100 billion (US $ 323 billion). The goal is to finance infrastructure projects around the world. China will be the main shareholder of the bank, followed by India. The head office is in Beijing.

The founding agreement is still being negotiated, but the Chinese seem to have agreed to make concessions to attract more participants and reduce mistrust. According to the "Wall Street Journal", Beijing agreed to give up the veto power to convince the Europeans to join.

The US opposition was considered by analysts a government goal against Barack Obama. Roberto Zoellick, who was president of the World Bank and representative of the George W. Bush administration of Commerce, said that the US failure was campaigning against the bank without providing an alternative.

source writing http://noticias.ne10.uol.com.br/economia/noticia/2015/03/28/brasil-sera-membro-de-novo-banco-de-desenvolvimento-liderado-pela-china-539296.php

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