NEW DEVELOPMENT BANK

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• Former Brazilian President Dilma Rousseff has been unanimously elected as the head of New Development Bank (NDB).
• The New Development Bank (NDB) was formerly referred to as the BRICS Development Bank.
• It is a multilateral development bank established by the BRICS countries (Brazil, Russia, India, China and South Africa).
• The Agreement on the New Development Bank entered into force in July 2015, with the official declaration of all five states that have signed it.

Purpose:

• The Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments.
• The NDB shall cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the Bank.

Corpus:

• The initial authorized capital of the bank is $100 billion divided into 1 million shares having a par value of $100,000 each.
• The initial subscribed capital of the bank was equally distributed among the founding members – Brazil, Russia, India, People’s Republic of China, South Africa.

Voting Powers:

Every member will have one vote and that no member would have any veto powers.

Headquarter:

1. Shanghai, China.

Regional Offices:

2. Johannesburg, South Africa
3. São Paulo, Brazil
4. GIFT City, India
5. Moscow, Russia

Main organs of the bank are:

6. Board of Governors
7. Board of Directors
8. President and Vice-Presidents

President and Vice President:

• The NDB President is elected on a rotational basis from one of the founding members.
• There are four Vice Presidents from each of the other four founding members.
• V. Kamath, from India, is the first elected president of the NDB.

SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB