‘Good chance’ for ROC or­di­nary AIIB en­try: Fi­nance Min­istry

The China Post - - TAIWAN BUSINESS - BY ENRU LIN

Tai­wan has an “ex­cep­tion­ally good” chance of gain­ing en­try into the Asian In­fra­struc­ture In­vest­ment Bank (AIIB, ) as an or­di­nary mem­ber, ac­cord­ing to the Min­istry of Fi­nance (MOF, ).

The as­sess­ment comes in the wake of Bei­jing’s re­jec­tion of Tai­wan as a found­ing mem­ber of the AIIB, a China-led mul­ti­lat­eral fund­ing body set to begin op­er­a­tions by year’s end.

Ma Xiaoguang ( ), of China’s Tai­wan Af­fairs Of­fice, said Bei­jing may wel­come Tai­wan’s par­tic­i­pa­tion in the AIIB later “in a proper ca­pac­ity.”

In a state­ment re­leased yes­ter­day, the Fi­nance Min­istry said Tai­wan has an “ex­cep­tion­ally good” chance at or­di­nary membership, which comes with key rights.

The dif­fer­ence be­tween found­ing and or­di­nary mem­bers of the AIIB is that the for­mer can set the rules and reg­u­la­tions, the min­istry said. But in ac­cor­dance with in­ter­na­tional prac­tices, the obligations and rights of all mem­bers are the same, and all mem­bers can have the right to vote.

There­fore, even with­out hold­ing sta­tus as a found­ing mem­ber, Tai- wan rep­re­sen­ta­tives can still sit on the AIIB’s board of di­rec­tors and gain the right to vote, the min­istry con­tin­ued.

US$200 Mil­lion in Vot­ing Power

Ac­cord­ing to the MOF, each mem­ber in the nascent fi­nan­cial or­ga­ni­za­tion will have vot­ing power in pro­por­tion to the mem­ber’s cap­i­tal in­vest­ment.

If the AIIB raises its reg­is­tered cap­i­tal from US$ 50 bil­lion to US$100 bil­lion, as re­ports have sig­naled, Tai­wan may con­trib­ute up to US$200 mil­lion up­front, ac­cord­ing to Pre­mier Mao Chi-kuo ( ).

There­fore, upon en­try, Tai­wan’s rep­re­sen­ta­tives may sit on the AIIB’s board of di­rec­tors and gain the right to vote, ac­cord­ing to the Fi­nance Min­istry.

Full Re­port on Thurs­day

Also yes­ter­day, the Fi­nance Min­istry said it will re­lease a com­pre­hen­sive as­sess­ment on po­ten­tial benefits and prospects of Tai­wan’s bid to be­come an or­di­nary mem­ber of the AIIB.

Fi­nance Min­is­ter Chang Sheng­ford ( ), Fi­nan­cial Su­per­vi­sory Com­mis­sion ( ) Chair­man Wil­liam Tseng ( ) and Cen­tral Bank of the Repub­lic of China Gov. Perng Fai-nan ( ) are sched­uled to re­port to­mor­row to the Fi­nance Com­mit­tee ( ) of the Leg­isla­tive Yuan. The AIIB is a Bei­jing-led body that as­pires to fund roads, air­ports and other in­fra­struc­ture projects in the Asia-Pa­cific re­gion, start­ing this year.

So far, the in­sti­tu­tion has re­jected Tai­wan’s bid but ap­proved found­ing membership for many of the world’s ma­jor economies, in­clud­ing Australia, the UK, Spain and South Korea.

The full list of found­ing mem­bers will be fi­nal­ized on April 15.

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