- World
- Aug 20
Iran to join New Development Bank of BRICS soon
• Iran will soon join the New Development Bank of BRICS, central bank governor Abdolnaser Hemmati said.
• Iran remains under sweeping US and international sanctions. It is yet to reach a peace deal to end the current conflict with the US and Israel.
• Tehran seeks to shore up its economic alliances almost six months into the war.
• Iran officially became a full member of BRICS on January 1, 2024.
• Iran would have to move through the NDB’s accession process before it can become an official member country.
New Development Bank
• New Development Bank (NDB) is a multilateral bank established in 2015 by BRICS — Brazil, Russia, India, China and South Africa.
• Its headquarters is situated in Shanghai.
• NDB started expanding its membership in 2021. Bangladesh, UAE, Egypt, Algeria, Colombia and Uzbekistan were granted membership.
• The Bank currently has 10 member countries.
• Current prospective members of NDB are Uruguay, Colombia, Ethiopia, Angola and Zimbabwe.
• Prospective members have been admitted by NDB’s Board of Governors and will officially become a member country once they deposit their instrument of accession.
• The purpose of the bank is to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries to complement the existing efforts of multilateral and regional financial institutions for global growth and development.
• The NDB has an initial authorised capital of $100 billion and initial subscribed capital of $50 billion of which $10 billion is paid-in capital. The initial subscribed capital is equally distributed amongst the founding members.
• Today, the NDB plays an increasingly significant role in advancing a just and sovereign transition.
• Since its establishment, over 120 investment projects totalling $40 billion have been approved in areas such as clean energy, energy efficiency, transportation, environmental protection, water supply, and infrastructure.
• The Board of Directors is responsible for the general operations of NDB. It is the highest decision-making authority. The Board of Governors consists of one Governor at the ministerial level and one alternate appointed by each member country.