Brazil has decided to reduce its stake in the Asian Infrastructure Investment Bank (AIIB) from 32,000 shares or US$3 billion originally planned to just 50 shares, Brazilian state news agency Estado reported.
The decision by Brazil, a founding member of the bank led by China, was based on the current economic situation of the country, which faces a severe recession and is experiencing a period of fiscal adjustment.
A Brazilian government source quoted by the agency said that the new stake of just 50 shares in the AIIB “is a much more affordable option for Brazil at the moment.”
The agency also reported that although the AIIBI is sufficiently capitalised, this Brazilian backtrack exposes the difficulties that the bank and China will face in working in collaboration with other governments and continuing the mission of financing infrastructure projects in Asia.
Opened in January 2016, the AIIB was launched as an improved and more efficient version of the World Bank, having since its establishment approved more than US$2 billion in loans. (macauhub)