The BRICS – Brazil, Russia, India, China and South Africa – agreed to set up the $100 billion development bank, in a step toward reshaping the Western-dominated international financial system [Xinhua]Financing sustainable development and infrastructure projects and local currency financing remain the focus of the New Development Bank launched by the BRICS countries, according to a new policy document for the next five years.
“The Bank will dedicate around two-thirds of all financing commitments in this period to sustainable infrastructure development, i.e., infrastructure projects that incorporate economic, environmental and social criteria in their design and implementation,” according to the policy document.
Most of the Bank’s projects will be either “sovereign operations or under sovereign guarantee”.
“Non-sovereign operations, particularly with the private sector, will be expanded as the operational capability of the Bank evolves,” the document said.
“Clean energy, transport infrastructure, irrigation, water resource management and sanitation, sustainable urban development, and economic cooperation and integration among member countries,” the document added.
The new lender has said it plans to expand membership gradually.
“NDB signifies developing countries’ coming of age and reflects their aspirations to stand on their own feet,” according to the 2017-2021 strategy document.
The bank will aim to lend $2.5 billion to $3 billion this year, its president K.V. Kamath announced in May, nearly double the amount the bank loaned last year.
The NDB was created in July 2014 with initial authorised capital of $100 billion. The lender was officially launched a year later.
TBP