Immigrating to the Philippines investors have received good news! On December 30, the Philippines finally announced it is officially joining the AIIB, becoming the last of the 57 prospective founding members to sign the agreement. A Philippine government representative authorized by President Benigno Aquino III will sign the "Articles of Agreement of the Asian Infrastructure Investment Bank" by the 31st. The AIIB is a promising institution aimed at addressing investment needs and will help many countries bridge their financing gaps. The Philippines believes that the AIIB will complement existing multilateral institutions and promote economic growth.
The AIIB is expected to hold its opening ceremony next January, but the Philippines, which announced it would become a prospective founding member of the AIIB in October 2014, had not yet signed the agreement. Philippine Finance Secretary Cesar Purisima stated earlier this month that the deadline for officially signing the agreement is December 31 this year, and the Philippines would use the remaining time for careful consideration.
Previously, media analysis suggested that the reason the Philippines was so "cautious" was that, on one hand, the AIIB is a powerful rival to the U.S.-led World Bank and the Japan-led Asian Development Bank; on the other hand, there are differences between the Philippines and China over the South China Sea issue, and the Philippine side was concerned that China would use the AIIB to exert influence over its member states.
The AIIB has an authorized capital of $100 billion, of which 20% is paid-in capital. The Philippines' paid-in capital will be approximately $196 million, to be paid off over five years. According to estimates by the Manila-based Asian Development Bank, from 2010 to 2020, the Philippines' infrastructure financing needs will reach $127.1 billion, with an annual demand of approximately $11.56 billion.