BRICS BANK: WHICH IS THE NEW MEMBER?
- On December 29, 2021, the BRICS New Development Bank (NDB) announced to add Egypt as its new member.
Key Points
- Egypt is the fourth new member admitted into NDB, following Bangladesh, United Arab Emirates (UAE) and Uruguay.
- Inclusion of Egypt has further expanded the global outreach of BRICS Bank.
How this move will benefit Egypt?
- The NDB will provide a new platform to Egypt, for fostering cooperation with BRICS countries on infrastructure and sustainable development.
- NDB will also help Egypt in engaging with other emerging economies and developing countries.
About New Development Bank (NDB)
- NDB is a multilateral development bank. It was jointly founded by the BRICS countries in 2014, at the 6th BRICS Summit in Fortaleza, Brazil.
- But it was formally opened on July 2015. The bank was set to support the infrastructure and sustainable development efforts in BRICS grouping and other underserved & emerging economies for a faster development through cutting-edge technology and innovation.
- It’s headquartered is at Shanghai, China.
Observer Status in UNGA
- NDB had received observer status in the United Nations General Assembly, in 2018. Thus, it established a firm basis for active and fruitful cooperation with the UN.
Objectives of UNGA
NDB has understated objectives:
- To foster development in member countries.
- To support economic growth.
- To promote competitiveness and facilitate job creation.
- To building a knowledge sharing platform in developing countries.
How the bank fulfils its objectives?
- In order to fulfil its purpose, NDB supports public or private projects by means of loans, equity participation, guarantees, loans, and financial instruments.
Developmental projects by NDB
- Ever since its establishment, NDB has approved around 80 projects for its members, with a portfolio of USD 30 billion.
- The projects cover sectors like clean energy, water & sanitation, transport, social infrastructure, digital infrastructure, and urban development.