The New Development Bank (NDB) has opened in Shanghai to finance infrastructure projects, mainly in BRICS countries.
BRICS countries namely, Brazil, Russia, India, China and South Africa are the world’s major emerging economies.
BRICS leaders signed an agreement to establish the bank during their 6th summit of the organisation in Brazil in July, 2014.
The BRICS first chair of the board of governors would be from Russia, the first chair of the directors from Brazil, and the first president from India.
Chinese Finance Minister Lou Jiwei, Shanghai Mayor, Yang Xiong and NDB President K.V. Kamath from India attended the opening ceremony held in Shanghai.
“The NDB will supplement the existing international financial system in a healthy way and explore innovations in governance models,” Lou said at a seminar following the ceremony.
Jim Kim, President, World Bank Group, said on Wednesday in a statement that the bank would start operations at the end of 2015 or early in 2016.
He said the New Development Bank has joined a growing number of multilateral institutions, including the Asian Infrastructure Investment Bank (AIIB), that were working to address the world’s huge infrastructure needs.
“The emerging markets and low-income countries face an annual gap of 1 trillion to 1.5 trillion dollars in infrastructure spending.
“We are committed to working closely with the New Development Bank and other multilateral institutions, offering to share our knowledge and to co-finance infrastructure projects.
“These types of partnerships will be essential to reach our common goals to end extreme poverty by 2030, boost shared prosperity, and to reduce inequalities,” he said.
Kim said NDB and AIIB would complement each other, as they were different in membership and have different directions.
Xu Xiujun, a researcher with the Institute of World Economy and Politics, China Academy of Social Sciences, said NDB would have an initial authorised capital of 100 billion dollars.
He said it would …Read More
Source:: PM Newspaper