The Luxembourg government, at its cabinet meeting on Friday, has approved the draft law concerning the Grand Duchy's accession to the Asian Infrastructure Investment Bank (AIIB)
The cost of Luxembourg's accession amounts to $69.7 million of which 20%, or $13.94 million is to be released to be made in five equal installments. This membership is part of the strategy to position Luxembourg as an offshore renminbi centre as per the strategy confirmed in the programme of government.
Representatives from 57 Prospective Founding Members (PFMs) of the Asian Infrastructure Investment Bank (AIIB) gathered
On 29 June 2015 50 founding members met in Beijing for the Signing Ceremony of the bank's Articles of Agreement, including: Australia, Austria, Azerbaijan, Bangladesh, Brazil, Brunei Darussalam, Cambodia, China, Egypt, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Iran, Israel, Italy, Jordan, Kazakhstan, Republic of Korea, Kyrgyz Republic, Lao PDR, Luxembourg, Maldives, Malta, Mongolia, Myanmar, Nepal, Netherlands, New Zealand, Norway, Oman, Pakistan, Portugal, Qatar, Russia, Saudi Arabia, Singapore, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Turkey, the United Arab Emirates, the United Kingdom, Uzbekistan, and Vietnam. The Articles remain open for signing by the remaining 7 Prospective Founding Members until the end of 2015.
The AIIB grew from the recognition of the importance of infrastructure to the development of Asia and the need for significant additional long-term financing for infrastructure in the region. After the signing of a Memorandum of Understanding on Establishing the AIIB in October 2014, discussions on AIIB's charter among prospective members continued through Chief Negotiators' Meetings, culminating in the adoption of the final text of the Bank's Articles of Agreement by the 5th Chief Negotiators' Meeting in Singapore in on 22 May 2015.
The Bank, which will be headquartered in Beijing, will initially have an authorised capital stock of $100 billion. Reflecting regional character of the Bank, its regional members will be the majority shareholders, holding approximately 75% of shares. The Bank's foundation will be built on international best practices and the lessons and experiences of existing Multilateral Development Banks and the private sector. It is expected that the AIIB will be operational by the end of 2015.
