• Kyodo

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The government said Monday it hopes the China-led Asian Infrastructure Investment Bank to be launched by the end of the year will meet governance and other standards appropriate to an international financial institution.

Japan hopes that by meeting such standards, the bank “will play a role as an institution that would contribute to sustainable development in the Asian region,” Chief Cabinet Secretary Yoshihide Suga said as delegates from more than 50 countries gathered in Beijing to sign the AIIB articles of agreement, which decide its initial capital and each member’s share, among other details.

“Japan would like to closely watch the actual operations of the AIIB from these perspectives,” Suga, the top government spokesman, said at a news conference.

Suga said Japan will consider participating in cofinance projects with the AIIB as part of steps to promote “high quality” infrastructure investment in Asia.

Japan will continue to consult with the United States and other relevant countries about the AIIB, and will hold dialogue with China as well, he added.

The Group of Seven industrialized nations are split in their response to the AIIB. While Britain, France, Germany and Italy have signed up to become founding members of the AIIB, Canada, Japan and the United States have stayed out, citing concerns over its governance and debt sustainability.