The Philippines is to become a member of the Asia Infrastructure Investment Fund (AIB), the largest foreign bank in the world and the world’s largest sovereign wealth fund, with the Philippines expected to receive a share of the $8 trillion AIIB.
The Philippines will be the sixth member of AIIBs, joining Japan, the United States, Germany, the European Union and Russia.
The AIIb was formed in 2005 by China and the European Economic Community as the World Bank’s flagship institution to help tackle climate change and finance infrastructure development.
“We are very happy to join AIIbs, and I want to thank our partners in the United Nations, the World Trade Organization and the international community for their efforts to ensure that this bank is a success for the Philippines,” Finance Secretary Carlos Dominguez said in a statement.
“The bank will be a key element of our agenda to address our poverty alleviation, the environment and sustainable development goals,” Domingue added.
While not a member, the Philippines is eligible for a small amount of money from the AIIBS and can receive loans and loans guarantee funds.
A few other Asian nations such as India, China, South Korea, Japan, Australia and the United Arab Emirates have already expressed interest in joining.
Last year, President Rodrigo Duterte said he would not accept any offer of membership from China.
He added that his administration will be ready to meet any demands that come from China if they are not met in accordance with international law and human rights.
The AIIBC has been criticised for its lack of transparency and its lack access to public information.
A statement from AIIBI said it welcomes the government’s decision to join.
It will continue to work to make the AIB more inclusive and will promote transparency, accountability and the rule of law, it added.