Geneva, March 20 (IANS): The Federal Council of Switzerland on Friday announced its decision to participate in the foundation process of the China-proposed Asian Infrastructure Investment Bank (AIIB).

In an official statement issued on Friday, Switzerland said it had submitted the necessary letter of intent to this new financial institution, China's state-run Xinhua news agency reported.

By taking this step, Switzerland will be able to be involved in the preparation of AIIB's articles of agreement.

The move will enable Switzerland to be well positioned in the new institution from the outset, and help the country to strengthen relations with China and with Asia in general, the statement said.

Concentrating on the region's poorer countries and sustainable economic development, AIIB plans to finance for energy, transport and telecommunications infrastructure, urban and rural development as well as the environment sector.