Post prime minister’s go ahead, Bangladesh to join $50 billion BRICS Bank.
Bangladesh has expressed its willingness to join the $50 billion BRICS Bank in an announcement made by the country’s finance minister, AMA Muhith, on August 19, 2014. Known as the New Development Bank (NDB), the BRICS Bank had been formed in July 2013 by five emerging markets, namely, Brazil, Russia, India, China and South Africa, as an alternative to the World Bank and the International Monetary Fund.
The NDB will have its headquarters in Shanghai, China, and will have an Indian CEO at the helm of affairs. Its first chairman of the board of governors will be from Russia, while the chairman of the board of directors will be nominated by Brazil.
Each BRIC nation will initially put in $10 billion to bring the bank’s starting capital to $50 billion. It will primarily focus on lending for infrastructure projects, starting 2016. However, the new bank has yet to decide on whether any country other than its founder members will enjoy its membership perks.
At present, Bangladesh borrows from the World Bank, the IMF, Asian Development Bank, Islamic Development Bank and other bilateral and multilateral lenders to fuel its development projects. The minister also mentioned that when the Chinese Asian Infrastructure Investment Bank will form, the country will seek to join it as well.
Photo Credits: The Gaurdian