The Cambodian government is seeking ratification from the National Assembly to invest 62.3 million U.S. dollars in the China-initiated Asian Infrastructure Investment Bank (AIIB), a spokesman said on Friday.
Phay Siphan, spokesman for the Council of Ministers, said the cabinet meeting, which was chaired by Prime Minister Hun Sen, agreed to send the agreement on the establishment of AIIB to the National Assembly for approval.
"Cambodia will invest 62.3 million U.S. dollars to purchase 623 shares in equivalent to 0.0635 percent of the AIIB's total capital, " he wrote on his Facebook page after the meeting.
Under the agreement, Cambodia will contribute 20 percent or 12. 46 million U.S. dollars of its total investment amount to the bank at the initial stage and the remaining amount will be required to pay in phases within 10 years, he said.
"Investing in the AIIB will provide Cambodia a new source of finance in medium and long terms," he said.
The Memorandum of Understanding on Establishing the AIIB specified that its authorized capital is 100 billion U.S. dollars.
AIIB is an international financial institution proposed by China in 2013 and was launched in Beijing in October 2014 with an aim of providing finance to infrastructure projects in Asia.
AIIB, comprised of 57 countries as founding members, will be officially established by the end of 2015.
