In a significant development, Australia, which had not joined the China led Asian Infrastructure Investment Bank due to pressure from USA, has joined AIIB. Australian government’s decision has come after extensive discussions with China and other key partners globally. Australia will invest about $ 930 million to the financial institution to become the sixth largest share holder while India is the second largest share holder.

Australia will contribute $ 930 million as paid-in capital to the AIIB over five years. AIIB will have paid-in capital of $ 20 billion with total authorized capital of $ 100 billion. According to official statement, there was an estimated infrastructure financing gap of around $ 8 trillion in the Asian region over the current decade.

Though it has been shunned by USA and Japan, the bank has already 57 prospective members.