On March 30, 2021, Union Minister of Finance, Nirmala Sitharaman attended the 6th Annual meeting of the Board of Governors of New Development Bank (NDB, formerly known as BRICS Development Bank), 2021 through video-conference in New Delhi. Due to pandemic, the Annual meeting took place in a virtual format.
- Theme of Annual Meeting – ‘New Development Paradigms: The Evolution of Infrastructure’.
- Participants – Governors/Alternate Governors of Brazil, China, Russia & South Africa.
Key Points from FM’s Address
- India has supplied 63.9 Million doses of made-in-India COVID-19 vaccine to 80 countries including 10.4 Million doses of the vaccine as a grant.
- India highlighted NDB’s role in countercyclical lending through a USD 10 Billion Emergency Assistance Programme for supporting member countries in their fight against COVID-19.
- Nirmala Sitharaman highlighted India’s initiative to set up a new Development Financial Institution (DFI) with initial paid-up capital of USD 3 Billion, with a lending target of USD 69 Billion in the next three years (2021-23).
- India urged NDB to facilitate private sector participation, explore innovative financing structures & discover co-financing opportunities with other Multilateral Development Banks (MDBs).
- It urged BRICS to improve its ratings by International Rating Agencies through adequate capitalization, Quality Governance and prudent management.
Loan Approval for Russia
- NDB approved a loan of up to USD 1 Billion to support healthcare workers treating patients for COVID-19 in Russia.
New Development Bank
- It was set up in 2014 by BRICS countries (Brazil, Russia, India, China, and South Africa).
- Objective – To mobile resources for infrastructure & sustainable development projects in BRICS & other EMDCs (Emerging Markets and Developing Countries).
- NDB has so far approved 18 Projects of India for an amount of USD 6, 924 Million.
Central Banks of BRICS Countries
- Brazil – Banco Central do Brasil (Central Bank of Brazil) (Headquarters – Brasilia)
- Russia – Central Bank of Russian Federation (Headquarters – Moscow)
- China – People’s Bank of China (Headquarters – Beijing)
- India – Reserve Bank of India (Headquarters – Mumbai)
- South Africa – South African Reserve Bank (Headquarters – Pretoria)
Recent Related News:
i.On December 16, 2020, a loan agreement was inked between Government of India (GoI) and NDB under which the latter will lend $1,000 million ($1 billion) for supporting the former’s economic recovery from COVID-19.
ii.October 1, 2021, NDB approved USD 241 Million for Mumbai Metro Rail Project, and USD 500 Million for Delhi-Ghaziabad-Meerut Regional Rapid Transit System (RRTS) Project.
About New Development Bank (NDB):
President – Marcos Prado Troyjo
Headquarters – Shanghai, China