WASHINGTON, April 22, 2024 /PRNewswire/ -- The Asian Infrastructure Investment Bank (AIIB) and the European Stability Mechanism (ESM) have renewed their Memorandum of Understanding (MOU) to build on their successful collaboration and further enhance inter-institutional cooperation.
The renewed MOU was signed by AIIB President and Chair of the Board of Directors Jin Liqun and ESM Managing Director Pierre Gramegna on the sidelines of the 2024 IMF and World Bank Spring Meetings in Washington D.C. on April 20. The MOU was originally signed in 2019.
ESM Managing Director Pierre Gramegna and AIIB President Jin Liqun at signing of the MOU
"The signing of this MOU marks a significant milestone in the continued partnership between AIIB and ESM," said AIIB President and Chair of the Board of Directors Jin Liqun. "By reaffirming our commitment to deepen cooperation, we are poised to make even greater strides in promoting sustainable development for our Members."
"Our missions, though distinct, have a common denominator: strengthening international cooperation and responding to the fundamental needs of our Members. The AIIB focuses on bridging the global infrastructure gap, while the ESM safeguards financial stability in the euro area. The renewed MOU will be a catalyst for closer cooperation and will allow us to draw on the strengths and expertise of our respective institutions," said ESM Managing Director Pierre Gramegna.
Over the years, AIIB and ESM have gained valuable experience and deepened collaboration, leading to strengthened partnership. The renewed MOU outlines a comprehensive framework for inter-institutional cooperation and both institutions may provide mutual technical assistance in areas relevant to their respective financial and operational activities. These include business planning, policy and economic analysis, funding, investment and treasury activities, business continuity and other relevant areas.
As the world faces uncertainties, the strengthened partnership underscores the importance of international collaboration in addressing global challenges and advancing economic growth. It will further enable the AIIB and ESM to benefit from shared knowledge and best practices, fostering greater efficiency and effectiveness in their respective operations.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 109 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients' needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.
About ESM
The European Stability Mechanism (ESM) has the mandate to preserve financial stability in the euro area by providing financial assistance to member states with severe financing problems. It is a permanent inter-governmental institution, operating since October 2012. The shareholders of the ESM are the 20 euro area member states. The ESM finances its assistance by issuing bonds and other debt instruments. It has a total subscribed capital of approximately €700 billion, which comprises €80 billion in paid-in capital and €624 billion in committed callable capital. The ESM's maximum lending capacity is €500 billion.
