Moscow To Be Eurasian HQ For BRICS New Development Bank
The BRICS nations, currently attending the Annual BRICS Summit in Brasilia, have have concluded an agreement on opening the blocs New Development Bank Eurasian Regional Center in Moscow. The deal was signed off by the NDB President Kundapur Vaman Kamath and Russian Deputy Prime Minister Sergey Storchak, according to Sputnik The office is expected to open early in 2020.
NDB’s Kamath stated “We have seen that whenever we open an office in a particular country, it adds a big investment pipeline. I am sure that we will have a very good pipeline in Russia after we are able to open our office in the next two or three months. Storchak told Sputnik that about five to seven people would be working at the NDB’s Eurasian Regional Center in Moscow.
Under the deal, apart from the Moscow office, the NDB may also open offices in other Russian cities.
The NDB was established by Brazil, Russia, India, China, and South Africa in 2014, with each holding 20% of the Banks equity. It is currently focused on developing sustainable infrastructure. The bank HQ is in Shanghai, while the Africa Regional Center in Johannesburg was the first regional office to be set up by the NDB in August 2017. In July 2018, a deal was signed for establishing the Americas Regional Office (ARO) in Sao Paulo. Moscow is its third regional location.
The initial authorized capital of the bank is US$100 billion divided into 1 million shares, having a par value of $100,000 each. The initial subscribed capital of the NDB is $50 billion divided into paid-in shares (US$10 billion) and callable shares (US$40 billion). The initial subscribed capital of the bank was equally distributed among the founding members. The Agreement on the NDB specifies that the voting power of each member will be equal to the number of its subscribed shares in the capital stock of the bank.
The bank aims to contribute to development plans established nationally through projects that are socially, environmentally and economically sustainable. Taking this into account, the main objectives of the NDB can be summarized as follows
- Promote infrastructure and sustainable development projects with a significant development impact in member countries.
- Establish an extensive network of global partnerships with other multilateral development institutions and national development banks.
- Build a balanced project portfolio giving a proper respect to their geographic location, financing requirements and other factors.
As of 6 March 2019, the NDB Board of Directors approved 30 projects with loans aggregating over US$ 8 billion. The Bank has begun non-sovereign operations with loans approved in Brazil, South Africa, and Russia.
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