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Michael Clauss, the German ambassador to China. Photo: Simon Song

Exclusive | Germany to have director on China-initiated AIIB bank’s board, says envoy

Berlin’s envoy to China calls for a ‘strong’ board with power to approve projects, and suggests Frankfurt as investment bank’s European office

Germany will have a director on the board of the Asian Infrastructure Investment Bank (AIIB), according to the nation's envoy to China, Michael Clauss.

Member nations are still discussing how many directors the board should have, but Clauss told the he believed that Germany "being the most important European economy, will be represented on the board".

Germany, the most important European economy, will be represented
MICHAEL CLAUSS, ENVOY TO CHINA

He also said Germany wanted the board's make-up to reflect the various regions joining the Beijing-led bank.

His remarks came as the 57 founding members of the bank met in Singapore for a three-day meeting to discuss operational policies.

"We are in favour of a strong board of directors, which will have the power to approve projects," Clauss said.

Germany was participating in the bank as it recognised the need for financing infrastructure in developing countries, Clauss said.

"I think at some stage, the decision will be made to have an office in Europe and Frankfurt would certainly be a good candidate," he added.

Philippines finance chief Cesar Purisma said on Wednesday that China was proposing to include non-Asian countries on the board of the bank.

The AIIB was established under China's "One Belt One Road" initiative, which is aimed at bolstering trade and infrastructure links.

Its establishment has triggered concerns in the West that China is expanding its geopolitical influence abroad.

There have also been concerns over whether the bank's governance will meet international standards. Neither the United States nor Japan applied to be founding members.

Clauss said China would be an influential player in the bank, as was the United States in the World Bank or the International Monetary Fund, but he added that the bank would operate in accordance with international procedures, including the requirement of a super qualified majority for voting to approve critical projects.

"For us, it is important that the standards do not differ too much from those adopted by the IMF, the World Bank and the Asian Development Bank," he said.

"Our feeling is that Beijing does respect that it has to adhere to international standards and procedures."

The AIIB would cooperate with other financial institutions, with former World Bank employees contributing to drafts for environmental and social standards, Clauss said.

"It is quite important not to have parallel financial institutions competing with the IMF, the World Bank and the Asian Development Bank," he said.

Founding members of the bank will initially pay up to one-fifth of its US$50 billion authorised capital, which will be raised to US$100 billion.

In addition to the AIIB, China has also announced various funds to boost infrastructure investment overseas, covering Asia, Africa and Latin America.

This article appeared in the South China Morning Post print edition as: 'Germany will have director on AIIB board'
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