NDB admits UAE, Bangladesh, Uruguay as new members | Daily Current Affairs 2021

NDB admits UAE, Bangladesh, Uruguay as new members

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New Development Bank (NDB)

BRICS Bank: The New Development Bank (NDB), set up by the BRICS group of nations, on September 2, 2021, admitted United Arab Emirates (UAE), Bangladesh, and Uruguay as its new members.

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

About New Development Bank (NDB):

  • NDB formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa).
  • India, China, and South Africa).
  • During the sixth BRICS Summit in Fortaleza (2014), the leaders signed the agreement establishing the New Development Bank (NDB).
  • It was launched in 2015.
  • It is headquartered in BRICS Tower in Shanghai, China.
  • The current president of NDB is Marcos Prado Troyjo.

Functions:

  • The bank mainly supports public or private projects through loans, guarantees, equity participation, and other financial instruments.
  • It mobilizes resources for infrastructure and sustainable development projects in the member countries as well as in other developing nations.
  • Since its launch, the NDB has signed off some 80 projects worth $30 billion in all of its five-member countries stretching across sectors from transport, water, and sanitation to clean energy or digital and social infrastructure.

Aim:

  • The bank aims to contribute to the development plans established nationally through socially, environmentally, and economically sustainable projects.

Background:

  • The idea of setting up the bank was proposed by India during the 4th BRICS summit in 2012, which was hosted by New Delhi.
  • The first regional office of the NDB was set up in Johannesburg, South Africa while the second regional office was established in 2019 in Brazil, followed by in Russia.

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