Malta has joined Germany, France, Italy, the United Kingdom, Luxembourg, Switzerland and 30 other countries as a prospective founding member of the Asian Infrastructure Investment Bank (AIIB).
Malta’s application was accepted by China’s Ministry of Finance.
The multilateral development bank, of which China will be the principal shareholder, is expected to be set up by the end of this year with an initial capital of $50 billion. Its membership, which allows for a maximum 25 per cent non-Asian shareholding, will be finalised on April 15.
AIIB founding members will have the right to set out the rules for the bank, which will provide access to finance for infrastructural projects in Asian developing countries in areas such as transportation, energy, agriculture, telecommunications, and urban development.
This will be done through a variety of support measures such as loans, equity investments, and guarantees. This assistance can complement the support already given in the region by existing multilateral development banks, such as the World Bank and the Asian Development Bank.
In the coming weeks, Malta will join the other prospective founding members to discuss and approve the AIIB’s articles of agreement, which will lay down the governance and accountability rules on which the bank’s operations will be based.
Finance Minister Edward Scicluna said: “This partnership is a reflection of the Maltese government’s endeavours to forge closer ties with the Asian market as part of its economic growth roadmap.
“Malta’s AIIB membership will further cement Malta’s friendship and cooperation with Asian countries, and particularly with China, which is spearheading this global initiative. By getting actively involved, Malta expects to maximise its role as a financial services centre, and as a catalyst of investment initiatives that bring Asia and Europe closer together. We consider this as yet another opportunity to serve as bridge-builders between the two continents.
“As International Monetary Fund research has shown, boosting efficient infrastructure investment can be a powerful impetus to economic growth, both in the short and in the long run,” the minister said.