New Development Bank

Founders

The New Development Bank (NBB) was founded in 2015 by the BRICS countries, which includes Russia, Brazil, India, China and South Africa)

There is no dominant shareholder in the New Development Bank for 2023: China agreed to equal shares, which it advocated. India The bank Brazil is headquartered in Shanghai but was led by an Indian and later former president Dilma Rousseff.

Performance indicators

Since the start of its operations in 2015 by May 2023, the New Development Bank has approved more than US $30 billion in loans for projects such as water and transport infrastructure.

History

2023

Only $32.8 billion of loans issued over 8 years

For eight years of operation, the BRICS Development Bank has provided loans worth only $32.8 billion. The United States, which is a negligible share of the amount allocated by the IMF and the World Bank during this period.

Algeria applies to join bank shareholders with $1.5 billion stake

Algeria in July 2023 applied to join the shareholders of the New Development Bank (NDB), created by the member countries of the BRICS interstate association. According to Algerian President Abdelmadjid Tebboune, the country's estimated share will be $1.5 billion. Tebboune reiterated that an official application for Algeria to join the BRICS has been submitted.

Refusal to create the currency of the BRICS countries

The new development bank does not plan to create a common currency for the BRICS countries in the near future, the vice president and chief financial officer of the bank said in July 2023.

While BRICS members Brazil-,,, and Russia India- China REPUBLIC OF SOUTH AFRICA insist on trading more among themselves in local currencies, they are not prepared to challenge global dominance, Leslie dollar Maasdorp said in an interview. Even the Chinese yuan is "still a long way from becoming a reserve currency."

Leslie Maasdorp

"Developing anything alternative is more of a medium- and long-term ambition," he said. "There are now no proposals to create a BRICS currency."

Halting the issuance of new loans and problems raising dollars to pay off debts

The bank has practically stopped issuing new loans and is having difficulty attracting dollar funds to pay off its debts, WSJ sources said in June 2023.

Honduras applies to join bank

On June 10, 2023, the official government account Honduras Twitter in reported that Honduran President Siomara Castro visited the headquarters of the New Development Bank BRICS Shanghai in and met with bank president Dilma Rousseff. The tweet also mentions that Rousseff "formally accepted" Honduras' application to join the bank.

Honduras finally broke with Taiwan and opened an embassy in China. The President of Honduras attended the opening ceremony of the embassy after she applied to join the BRICS Development Bank.

Egypt becomes a member of the bank

Egypt became a member of the bank in February 2023

2022

Freezing projects in Russia against the background of the conflict in Ukraine

Other BRICS countries have taken a generally neutral position towards Russia's military special operation in Ukraine, viewing it more as a regional problem than a global crisis. However, the conflict changed Russia's relations with the BRICS institutions. The new development bank quickly froze Russian projects, and Russia was unable to access dollars through the BRICS common currency system. In fact, in the context of the growing sanctions from the United States, other BRICS countries have given priority to maintaining access to the dollar financial system, rather than helping Russia.

$30 billion of loans allocated, including 25% to China and 14% to Russia

The bank's main operations began in 2018 and 90 reporting projects as of July 30, 2022 were allocated a total of about $30 billion in loans (China - 25%, India - 24%, South Africa - 18%, Brazil - 18%, Russia - 14%, international organizations -1%).

However, 80% of funding is realized in the currencies of unfriendly countries, where 68% of funding occurs in dollars, 8% in euros, 2% in Swiss francs, 18% in yuan and 4% in the South African rand.

2021

Bangladesh, UAE join bank

Bangladesh and the UAE joined the bank in 2021.

Provision of MTS credit line for development of infrastructure for communication and cloud services

MTS took out a $300 million loan from the New Development Bank (NBB), founded by the BRICS countries, to develop infrastructure for communication and cloud services. The Russian mobile and fixed-line operator announced this on January 29, 2021. Read more here.

2020

Bank approves five new projects in Brazil, Russia and South Africa for $2.7 billion

The Board of Directors of the New Development Bank (NBR) BRICS approved in December 2020 five new projects in Brazil, Russia and South Africa for a total of $2.7 billion. This is stated in the press service of the bank, posted on Thursday on the website of the financial organization^[1].

"The Board of Directors of the New Development Bank on December 15, 2020 held its 29th meeting, which was held in a virtual format. At the meeting, the council approved five investment projects with a total commitment of about $2.7 billion, "the document says. We are talking about three projects in Brazil and one each in Russia and South Africa.

The Russian project provides for the provision of $300 million MTS for the expansion and development of the cellular network and cloud services. "The loan will be used to finance the company's capital investment program to expand its cellular network and deploy cloud service infrastructure in Russia," the press release said.

The Board of Directors of the NBR BRICS approved the provision of another $1 billion to Brazil and India under the emergency assistance program to the member countries of the bank in the fight against the consequences of the pandemic.

Brazil's sovereign loan to restore the economy affected by the pandemic was approved on December 7. "The program will support the Brazilian federal government in its efforts to preserve jobs and incomes, and support economic recovery by expanding access to credit for small and medium-sized companies," the document says.

A similar loan for the Indian government was approved on December 11. The funds, indicated in the document, will be used to support the Indian authorities in efforts to contain the economic consequences of the pandemic. "The program will help mitigate the adverse economic consequences of the COVID-19 pandemic, restore the economy in rural areas through natural resource management and create employment opportunities for the rural poor, especially migrant workers who have returned from cities, losing their livelihoods due to the COVID-19 pandemic," the press release said.

Thus, Brazil and India have already received $2 billion each as part of a program to help member countries of the bank in the fight against the pandemic. The bank also provided $1 billion each to China and South Africa earlier. The total amount of assistance under this program should be $10 billion.

South Africa receives a loan of $1 billion to fight the COVID-19 pandemic

South Africa in 2020 took out a loan of $1 billion to combat the COVID-19 pandemic.

2015: Foundation of the New Development Bank

The BRICS countries founded the New Development Bank, an organization inspired by the World Bank.