On The Research Of The Applicable Law Of Asian Infrastructure Investment Bank

When operating a loan project,AIIB will reach a loan agreement with the borrower to specify their rights and obligations.Thus a loan agreement is the most significant legal document signed during the loan process.In order to solve disputes from the loan project,AIIB's loan agreement needs to choose an applicable law,which is the same as normal International loan agreement.However,since the bank has an international legal personality,and the borrower could be a member state or an entity,so the problem is much more complicated.From the perspective of international law,this article will concentrate on this topic and based on AIIB applicable law provision,discuss whether this provision is suitable and risk-free.After that,the author will try to give some advises on such provision.This article contains four parts.Chapter one starts from an introduction of AIIB and its loan agreements,including the nature of AIIB's loan agreement and how to classify these agreements.Chapter two will concentrate on the applicable law problems under the AIIB legal framework.According to traditional theory,the agreement signed between the AIIB and the member countries is an international treaty and international law is applicable,but at the moment the principle of party autonomy is dominant in the application of laws in the area of international lending contracts.Whether the AIIB should consider applying national law according to the parties' selection? The nature of the agreement signed between the AIIB and the corporate entity and guaranteed by the member states is controversial.Therefore,it is still unclear whether the international or domestic law is applicable.At present,the AIIB has no explicit provisions on the application of laws for non-sovereign loan agreements,leading to certain laws applying risks.The third chapter takes the parties' autonomy and the principle of the closest connection as the starting point,and analyzes from an economic perspective the AIIB's use of the principle of autonomy of the will,and the particularity of the application of the principle of the closest connection in the loan agreement of the AIIB.The last chapter suggests how the AIIB can improve its legal application mechanism.The AIIB Sovereignty Loan Agreement should adhere to the principle of the application of international law,but it cannot rule out the application of the laws of the developed countries or regions where the financial system is relatively similar,such as Hong Kong law and British law.For the non-sovereign loan agreement,the application of the domestic law is more advantageous than the application of international law.In the absence of the governing law of the contract,the contract law is presumed to be the applicable law based on the principle of the most closely related.