BRICS New Development Bank admits Bangladesh, UAE, Uruguay; India welcomes new members

As a part of an extensive membership expansion program by the New Development Bank (NBD), the BRICS group of nations has admitted Uruguay, United Arab Emirates (UAE), and Bangladesh in its first batch of new members. India welcomed the newly appointed members chosen under the expansion drive, Indian External Affairs Ministry spokesperson Arindam Bagchi said on September 4, Friday. The new members will "add value" and enable New Development Bank (NBD) "to position itself as the premier development institution for emerging economies," Bagchi said in his statement.

The Indian diplomat took to Twitter to announce the admission of the new nations and expressed his hopes for the newer developments. The additional membership comes as a part of the new expansion program undertaken by the international bank's board of governors.

“We are delighted to welcome the UAE, Uruguay, and Bangladesh to the NDB family. New members will have in NDB a platform to foster their cooperation in infrastructure and sustainable development,” Mr. Marcos Troyjo, President of NDB said in a statement. Additionally, the international financial organisation has decided to continue to expand the Bank’s membership in a gradual and balanced manner.

NBD's expansion program

As per a statement by NDB, the Board of Governors authorized the Bank to conduct formal negotiations with prospective members in late 2020. After a round of successful negotiations, NDB approved the admission of the United Arab Emirates (UAE), Uruguay, and Bangladesh as its first new member countries. NDB’s membership expansion is in line with the Bank’s strategy to be positioned as the premier development institution for emerging economies, the statement added.

The newly-appointed member nations

The United Arab Emirates membership in the New Development Bank represents "a new step to enhance the role of the UAE economy on the global stage," H.E. Obaid Humaid Al Tayer, Minister of State for Financial Affairs of the UAE said in a statement expressing his views on the admission. Additionally, UAE's inclusion also comes due to its special contribution in light of the great capabilities and expertise that the country possesses in supporting infrastructure projects and sustainable development, the statement added. "This monumental step would not have been achieved without the vision and direction of the UAE leadership, who believe in the importance of supporting development projects around the world, especially in emerging economies,” Mr. Humaid Al Tayer mentioned.

“Membership of Bangladesh to NDB has paved way for a new partnership at a momentous time of 50th anniversary of our independence. Membership in the NDB is an important step forward in meeting the development vision of our Hon’ble Prime Minister, Sheikh Hasina. We look forward to working closely with NDB to build together a prosperous and equitable world for our next generation as dreamt by our Father of the Nation Bangabandhu Sheikh Mujibur Rahman”, said Hon. A H M Mustafa Kamal, Minister of Finance of Bangladesh.

On the other hand, Uruguay has taken this opportunity "to harness cooperation with its member countries." "It has also aimed to achieve stronger international integration in trade and cross-border investment flows,” said H.E. Azucena Arbeleche, Minister of Economy and Finance of Uruguay. Once admitted, a country’s membership to NDB becomes effective when it completes its domestic processes and deposits the instrument of accession.

BRICS New Development Bank

NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. The head office of the international bank is located in Shanghai, China. As per an official statement, the bank has an authorized capital of US$ 100 billion, which is open for subscription by members of the United Nations.

The international organisation has approved about 80 projects in all of its members, totalling a portfolio of US$ 30 billion since the beginning of its operations. The projects include the development of sectors such as transport, water and sanitation, clean energy, digital infrastructure, social infrastructure, and urban development.

With inputs from @NBDint/Twitter

Image: ANI/@ihcdhaka/Twitter