AMN /
The New Development Bank (NDB) floated by the BRICS nations, to step up infrastructure funding in the emerging economies formally started its operations at its headquarters in Shanghai today. Chinese Finance Minister Lou Jiwei, Shanghai Mayor Yang Xiong and the bank’s President K V Kamath attended the opening ceremony. Kamath will be the bank’s President for the first five years.
The NDB will supplement the existing international financial system in a healthy way and explore innovations in governance models, Lou said at a seminar following the ceremony. BRICS economies – Brazil, Russia, India, China and South Africa – launched the multi-billion dollar development bank at the 7th BRICS summit held in the Russian city of Ufa on July 8 amid efforts to finance infrastructure projects, mainly in member countries.
The NDB will have initial capital of USD 50 billion, which will be expanded to USD 100 billion within the next couple of years. Each BRICS member will contribute an equal share inestablishing a startup capital. Each nation will have an equal say in the bank’s management, regardless of GDP size.
