AIIB credits cheaper for Russian borrowers than other sources - Deputy Finance Minister Storchak

BEIJING, June 29. /TASS/. Receiving financial loans from the Asian Infrastructure Investment Bank (AIIB) will be cheaper for Russian entrepreneurs than other sources, the Deputy Finance Minister Sergey Storchak told TASS Monday after signing the agreement on Bank’s creation. "All things considered, the institution will receive high credit ratings; will have an opportunity to obtain funds in the international financial markets for a rather cheap price. Consequently, the resources of the Bank will become significantly cheaper for borrowers from Russia against the funds from other sources. Although it is still too early to talk about the funds’ volume," the Minister said. According to him, the institution "potentially can be of interest for the regions of the Far East and Siberia taking into account the role the Russian-Chinese relations play in the region’s development." "It is not even about creating a versatile bank for the region’s development, but rather about the fact that Russia and China will become the third and the first shareholders of the bank in terms of the capital they control. And this might guarantee the future interest of Russian entrepreneurs, who will try to gain access to the bank’s resources," Storchak added. On Monday, June 29, Russia signed an agreement on creating the Asian Infrastructure Investment Bank (AIIB), becoming the third founding country for the voting share of this international financial institution. Russia was represented by the Deputy Finance Minister Sergey Storchak who signed the document. Russia became the owner of 65,362 shares of the bank, receiving 5.92% of the vote. China and India got a voting share of 26.06% and 7.5%, respectively. A source in the Russian delegation told TASS the representatives of 50 countries have already signed the document, while another seven founding countries will ink it after undergoing a ratification procedure. These countries are Kuwait, Malaysia, the Philippines, Thailand, Denmark, Poland and South Africa. In an interview with TASS, Russian Deputy Economic Development Minister Stanislav Voskresensky said the bank would operate in line with the principles similar to those of the European Bank for Reconstruction and Development (EBRD), and the financing of the first projects is expected in 2016. The charter capital of the future financial institution will be $100 bln. The share of the Asian countries should not exceed 75%; participants from other regions have 25% of the capital. The charter capital divides into 1 mln of shares worth $100,000 each. Headquartered in Beijing, the bank is expected to start operation in late 2015. Read more