The Grand Duchy was the first country outside Asia to apply to the Asian Infrastructure Investment Bank (AIIB) and be accepted as a non-regional member. The aim of this new international financial institution is to promote development in Asian countries by meeting their need for infrastructures. At the bank's inaugural meetings, its Articles of Agreement, procedures and internal regulations were adopted and its leaders elected before it officially commenced operations.
A privileged partner
The Grand Duchy, represented by its Minister of Finance Pierre Gramegna, was indeed the only western country to have the privilege of speaking at the official opening ceremony. The Minister highlighted the importance of investment in infrastructures for economic growth, and the potential for coordination between the AIIB and the other multilateral banks, including the EIB (European Investment Bank), which has its headquarters in Luxembourg. The Minister also mentioned the broad lines of the Juncker plan in Europe, which heavily relies on investment in infrastructures as a means of boosting growth.
In his capacity as Governor of the new bank, Pierre Gramegna also spoke at the first meeting of the Board of Governors. He recalled the need for the new bank to apply the highest standards of governance. He also referred to the importance of collaboration with the private sector and the key role played in this regard by international financial centres such as the Grand Duchy.
A strong link between the Grand Duchy and Asia
The AIIB is a multilateral development bank which aims to support the development of infrastructures and other productive sectors in Asia, including energy, transport and communications, rural infrastructures and the development of agriculture, water supply and sanitation, protection of the environment, urban development, and logistics.
The Grand Duchy is home to the largest volume of deposits in renminbi in Europe and is Europe's leading centre for trading in bonds in RMB, and the fourth centre in the world for trading in Dim Sum bonds, confirming the special link between the Grand Duchy and its Asian partners.
(Source: press release from the Ministry of Finance / Luxembourg for Finance)