Luxembourg plans closer cooperation with AIIB

LUXEMBOURG - Luxembourg will work closely with the Asian Infrastructure Investment Bank (AIIB) to boost sustainable investment and improve regional connectivity, its finance minister said.

The nation's finance minister, Pierre Gramegna, made the commitment on Tuesday after signing a Memorandum of Understanding with Danny Alexander, vicepresident and corporate secretary of the AIIB.

Following China, South Korea and India, Luxembourg will host the AIIB's 2019 annual meeting on July 12-13, 2019, making it the lender's first annual meeting in Europe. The theme next year is "Cooperation and Connectivity" in recognition of the economic and social benefits to be realized by enhancing connectivity within and between countries and regions, including Asia and Europe.

Luxembourg was the first European country to join the AIIB as one of its 57 founding members.

The annual meeting will gather the AIIB's governors and directors, along with delegations from member countries, partner institutions, business leaders, civil society and experts from a range of fields, according to Gramegna.

The Luxembourg Finance Ministry estimates that 2,000 stakeholders will discuss the bank's development plans, especially on green financing and sustainable infrastructure.

The second Asian Infrastructure Forum will also be held as part of the annual meeting next year. In addition, a series of leadup events will take place in the first half of 2019 at the Luxembourg Chamber of Commerce and several other European member countries of the AIIB.

"As a leading global center of finance and innovation, we look forward to strengthening cooperation on strategic investments in sustainable infrastructure, especially developing innovative financing solutions, which will contribute to deeper integration and stronger economic growth," said Gramegna.

The idea is to leverage Luxembourg's position as an international financial center that can bridge international financial gaps, and more specifically between Europe and Asia, he added.

"The potential of sustainable infrastructure is not limited to within the region it is located, and further cross-border cooperation will only strengthen international trade and contribute to fighting climate change," he said.

Liu Jia in Luxembourg contributed to this story.