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REYKJAVIK, March 31-- Iceland decided to become a founding member of the Asian Infrastructure Investment Bank (AIIB) on Tuesday, according to a statement of Iceland's Ministry of Finance and Economic Affairs.

The statement came at the last minute of the deadline for the submission of application to become AIIB's founding members, which is set on Tuesday.

The AIIB is an international financial institution proposed by China, aiming to support infrastructure projects in Asia.

Countries and regions will still be able to join the bank after Tuesday, but only as common members.

The Memorandum of Understanding on Establishing the AIIB specified that its authorized capital is 100 billion U.S. dollars and the initial capital will be around 50 billion dollars. The paid-in ratio will be 20 percent. As agreed, Beijing will host the AIIB's headquarters.

As a member of AIIB, the Iceland's government will further strengthen the good relations between Iceland and Asian countries and support the new shoots of the current stage, according to the statement published on the website of Iceland's Ministry of Finance and Economic Affairs.

The interest of nations to lend money for infrastructure development in Asia is not least the growing internationalization of the economic system in the world, said the statement.

It is expected that the AIIB will be formally established by the end of 2015, after the prospective founding members have signed and ratified the Articles of Agreement