Luxembourg

Luxembourg’s Development Cooperation Directorate of the Ministry of Foreign and European Affairs manages the country’s official development assistance, while its Ministry of Finance oversees cooperation with international financial institutions. Lux-Development (LuxDev) formulates and conducts the country’s cooperation projects with partner states. Luxembourg primarily provides grants to trust funds and technical assistance that prioritize local development, education, health, microfinance and finance, and renewable energies. Its priority countries in Asia are the Lao People’s Democratic Republic and Viet Nam.

LuxDev’s Vision 2030 is based on the Sustainable Development Goals, particularly Luxembourg’s General Cooperation Strategy—The Road to 2030, which sets out Luxembourg’s commitments on development cooperation and humanitarian action.

Highlights of ADB–Luxembourg Engagement in 2023:

Nonsovereign Cofinancing. The Trade and Supply Chain Finance Program (TSCFP) supported eight transactions valued at $1.4 million with a bank operating in Luxembourg from inception to December 2023. During the same period, the TSCFP supported over 20 Luxembourger exports and/or imports valued at $26.5 million. In 2023 alone, the TSCFP supported two Luxembourger exports and/or imports valued at $11.3 million. Exports and/or imports were mainly to or from Pakistan, Viet Nam, and Bangladesh. Underlying goods involve mostly raw and non-energy commodities, industrial machinery and capital goods, as well as technology and communications.

Luxembourg has also been supportive of ADB’s TSCFP and provided a total of $2.2 million through the Financial Sector Development Partnership Special Fund that finances TSCFP initiatives related to trade and supply chain finance capacity building, safeguards, gender, and anti-corruption and integrity measures.

Special Funds. Luxembourg contributes to ADB special funds. Since becoming a member in 2003, Luxembourg has committed $94 million to special funds, of which $64.8 million has gone to the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income, developing member countries to help reduce poverty and improve quality of life.