The New Development Bank (NDB) established by five BRICS nations which includes India will debut with the lending in the local currency by April 2016, and the member countries will mainly focus on the credit facility. This information was revealed by K.V. Kamath, the chief of BRICS bank and eminent banker.
He claimed that a decision to open the membership to the other countries will also be made in the coming months by the Board of Governors of NDB. He stated that the lending process will start sometime in the early first quarter of the next year that is by April. The idea is that within April 2016, the bank will create a state of projects from all the member countries regarding the lending process.
He further stated that NDB has a capital of $100 billion and that it is looking at several instruments of credit to its member countries that include Brazil, Russia, India, China and South Africa. These member countries have a requirement for huge resources development.
Kamath also stated that credit is what they are looking at and it is the various instruments of credit that they are looking at. He attended the BRICS Summit in which the country’s Prime Minister, Narendra Modi and other member countries that have taken part. The idea is that they will lend for the development assistance in the member countries.
It was in the last year that the BRICS countries have decided to establish the Bank. Also, India is the country that bagged the rights to nominate the first President of the NDB. Kamath also told that they will initially lend to the member countries. Later, in the due course, they will look at opening the membership in the next months. He also stated that they will discuss with the Board of Governors to expand in the due course.
He went on stating that the local currency credit will safeguard the BRICS countries from the fluctuations in the currency and volatility. The main intention of establishing the NDB is to understand the borrowers’ mindset. He claimed that the NDB will benefit the developing countries as the priority of the NDB as there will be economic development in the member countries.
He denied that the NDB will compete with the Asian Infrastructure Investment Bank (AIIB) that was recently established. He rather stated that they will work together and have cooperation and collaboration.
