Today I am announcing the Government’s intention for the UK to apply to become a prospective founder member of the Asian Infrastructure Investment Bank (AIIB).
The AIIB is being established to address the shortage of infrastructure investment in Asia. The Government believe that the AIIB has the potential to become an important part of the international financial architecture, working with existing multilateral development banks to strengthen growth in the region and benefit all our economies.
The UK will become the first major western country to apply to become a prospective founder member of the AIIB, which has already received significant support in the region. This Government have actively promoted closer political and economic engagement with the Asia-Pacific region and is forging links between the UK and Asian economies. Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together.
Subject to agreement by the existing prospective founder members, the UK will become a prospective founder member and participate in negotiations on the bank’s founding principles, with a view to ensuring that the new institution adheres to existing global best practice on governance and safeguards.
The Articles of Agreement establishing the AIIB will be finalised later in the year. At that point, based on the outcome of the multilateral negotiations, the Government will make a final decision on whether to join the AIIB.