Gov’t promulgates Brazil entry to Asian Investment Bank

A decree inked by President Jair Bolsonaro promulgates the constitutive agreement of the Asian Infrastructure Investment Bank (AIIB), signed by the Brazilian government in Beijing  in 2015.

Brazil’s participation in the deal was approved by the National Congress in August 2020. After Friday’s (Sep. 17) presidential decree, the agreement is incorporated into Brazil’s legal framework as part of the last stage of the country’s admission as a founding member of the AIIB.

Just as the New Development Bank, of the BRICS (group formed by Brazil, Russia, India, China, and South Africa), the Asian Infrastructure Investment Bank is multilateral in character and should be primarily active in the financing of projects in Asia, but it may grant credit to initiatives in other continents, provided that it is linked to some Asian initiative, the Brazilian government pointed out.

In addition to Brazil, 56 countries signed the treaty and share status as potential founding members. To be made effective, the agreement must be ratified by the Legislative Power of each country, followed by the incorporation of the bank’s social capital.

Originally, Brazil should buy shares from the bank adding up to $3.18 billion, but the government slashed the amount to approximately $5 million, claiming fiscal restrictions.

Source: Agência Brasil