PHL readies $1-B fee for AIIB membership

The government has started earmarking funds for the Philippine membership subscription to China-led Asian Infrastructure Investment Bank (AIIB), the Department of Budget and Management said Monday.

"We're actually joining AIIB. We've started setting aside some money for membership," Budget Secretary Benjamin M. Diokno told reporters in a briefing in Quezon City.

The Senate last week approved an additional budget of P1.86 billion for the Department of Foreign Affairs 2017 budget to cover the initial payment for the $1-billion membership equity in AIIB.

"For this year and next year, we're prepared for our subscription," Diokno said.

The Department of Finance last year signified the Philippine membership to AIIB, with a paid-in capital of $196 million payable in five years or $39 million a year. The AIIB has a total capital stock of $100 billion.

The articles of agreement was signed by then Philippine Ambassador to the People’s Republic of China Melinda F. Basilio on December 29, 2015, in place of former Finance Secretary Cesar V. Purisima who has granted full powers by former President Benigno Aquino III.

AIIB members have until December 2016 to complete their respective domestic ratifications and other approval processes, and pay the first tranche of the corresponding paid-in capital. — VDS, GMA News