New Development Bank

New Development Bank:
  • Also referred as BRICS Development Bank
  • It is a multilateral development bank operated by BRICS states.
  • The bank’s primary focus of lending will be infrastructure projects
  • The bank will have starting capital of $50 billion, with capital increased to $100 billion over time
  • Brazil, Russia, India, China and South Africa will initially contribute $10 billion each to bring the total to $50 billion
  • Unlike the World Bank, which assigns votes based on capital shares, here each participant country will be assigned one vote, and no country will have veto power
  • Countries apart from the BRICS countries will also be members- the bank will have some countries from ‘the south’ on a rotational basis, on the board of the bank, and they will be allowed to vote
  • The bank will allow new members to join but the share of BRICS countries cannot drop below 55%
  • HQ : Shanghai, China
  • Formed in 2015
  • The first regional office of the NDB will be opened in Johannesburg, South Africa
  • K V Kamath is its President.
  • In 2018, the NDB received observer status in the United Nations General Assembly, establishing a firm basis for active and fruitful cooperation with the UN.
  • What will NDB do?
    • the Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments.
    • shall cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the Bank
  • Why in news?
    • Egypt, Bangladesh, UAE and Uruguay has joined it.

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