S. Korea expects to hold about 3.5 pct stake in China-led AIIB

BEIJING, May 25 (Yonhap) -- South Korea expects to hold a stake of about 3.5 percent in the China-led Asian Infrastructure Investment Bank (AIIB), a delegate attending last week's meeting of the AIIB's founding members said Monday.

Senior officials from the 57 founding-member nations of the AIIB held the latest round of talks in Singapore last week during which they agreed on the charter of the new regional lender.

The AIIB is seen as a potential counterbalance to U.S.-led multilateral lenders such as the Asian Development Bank (ADB) and the World Bank. The U.S. and Japan did not join the AIIB, while calling for transparency and higher governance in the new bank.

China is expected to wield a "de facto veto power" in the AIIB with a stake of more than 25 percent, the delegate said on the condition of anonymity.

Representatives from the member countries will gather in Beijing in the final week of June to sign the charter, according to the delegate.

China's finance ministry has said the new bank will start operations by the end of this year, but did not give any details about the charter.

kdh@yna.co.kr
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