Luxembourg will be the European base of a new multilateral defence bank to be headquartered in Canada, Canada's Prime Minister Mark Carney said on Friday.
Five Canadian cities are competing to host the proposed Defence, Security and Resilience Bank championed by Carney.
The bank aims to raise $135 billion to fund defence projects, particularly in countries that struggle to access cheaper finance.
The bank will let small and medium-sized defence firms meet a surge in demand for weapons and other military equipment, particularly since the Ukraine war, and argues that other initiatives - including a European Union loan programme - have not done enough.
"There is a critical mass of countries that intend to join... Canada is one of them, and we will be the headquarters, Luxembourg is the European headquarters," Carney told reporters on Friday.
He said he looked forward to discussing the bank with the new UK Prime Minister.
Industry watchers expect more clarity on which countries might back the bank after the NATO meeting in Ankara next month.
-Reuters
Five Canadian cities are competing to host the proposed Defence, Security and Resilience Bank championed by Carney.
The bank aims to raise $135 billion to fund defence projects, particularly in countries that struggle to access cheaper finance.
The bank will let small and medium-sized defence firms meet a surge in demand for weapons and other military equipment, particularly since the Ukraine war, and argues that other initiatives - including a European Union loan programme - have not done enough.
"There is a critical mass of countries that intend to join... Canada is one of them, and we will be the headquarters, Luxembourg is the European headquarters," Carney told reporters on Friday.
He said he looked forward to discussing the bank with the new UK Prime Minister.
Industry watchers expect more clarity on which countries might back the bank after the NATO meeting in Ankara next month.
-Reuters
