BRICS New Global Development Bank (NDB)
Russian President Vladimir Putin has endorsed a law ratifying the deal on establishing the BRICS founding key global bank. , The draft agreement was ratified last month by Russia’s State Duma. The idea of the bank was first proposed by the BRICS leaders in the early 2014.
In June 2014 the key principles were settled and the agreement to found the joint development bank was signed at the BRICS summit in Fortaleza, Brazil. It is expected the NDB will become one of the world’s major institutions with a start-up capital of $100 billion.
NDB’s key role will be to serve as a pool of currency for infrastructure projects within a group of five countries with major emerging national economies. The money will be allocated for innovative projects in other emerging markets as well.
The New Development Bank slated to start operating fully by the end of the year will have headquarters based in Shanghai. The chairmanship for a five-year term will rotate among the BRICS members. An Indian top official will be appointed as the first NDB President while the first Chairman of the Board of Directors is expected to be from Russia. Interestingly, the bank is based on the principle that other countries of the United Nations Organization can apply for the NDB membership. Besides, any emerging or advanced economy can join the would-be global lending institution.