BRICS Bank admits UAE, Bangladesh, Uruguay as new members

New Development Bank (NDB) by BRICS group of nations has added United Arab Emirates, Uruguay and Bangladesh as the new members on September 2, 2021.

Key Points

This first batch of new members were added to the bank as part of its expansion drive.

New Development Bank

New Development Bank was Launched in 2015 by the BRICS Members- Brazil, Russia, India, China and South Africa. It was formerly referred as “BRICS development bank”. It is headquartered in Shanghai. The first regional office of the NDB was set up in Johannesburg, South Africa while second regional office was established in 2019 in Brazil, followed by in Russia.

Function of the Bank

The bank mobilises resources for infrastructure and sustainable development projects in the member countries as well as in other developing nations. It complements the existing efforts made by multilateral and regional financial institutions towards global growth and development.

Membership expansion

NDB started it membership expansion and started formal negotiations with prospective members in 2020. Admission of the UAE, Uruguay and Bangladesh as Bank’s first new member countries, was approved after a round of successful negotiations.

NDB’s capital and projects

The Bank has an authorised capital of USD 100 billion. It is open for subscription by members of the United Nations. NDB has approved about 80 projects in all of its member countries which amount to portfolio of USD 30 billion. Projects in areas of transport, water & sanitation, digital infrastructure, clean energy, social infrastructure and urban development are within the scope of NDB.

Month: Current Affairs - September, 2021