Leaders of the BRICS group of emerging powers on Tuesday created a Shanghai-based new international development bank and multi-billion emergency lending pools. The development bank will have initial capital of $50 billion that could rise to $100 billion, funded equally by each nation.
The “New Development Bank” (NDB) is intended to compete with the World Bank and its private lending arm, the International Finance Corporation (IFC), by making it easier and quicker for developing countries to gain access to large-scale financing for infrastructure projects. The first president of the New Development Bank will be from India and the position will rotate every five years among Brazil, Russia, India, China and South Africa — the so-called BRICS nations, a joint statement from the leaders said.
