The Union Finance Minister, Nirmala Sitharaman at the first BRICS Finance Minister and Central Bank Governors- FMCBG meeting on November 9, 2020, backed the expansion of membership of the New Development Bank (NDB).
As per the Finance Ministry, the FMCBG Meet also involved the discussions on the outcomes of the G20 Saudi Presidency in 2020 as well as the digital platform for encouraging infrastructure investment.
Currently, NDB, headquartered in Shanghai, has a total of 5 countries as its members with equal shareholding and voting rights. All the members of the United Nations are permitted to be members of the bank.
Finance Minister supports NDB’s expansion:
The Finance Minister supported the expansion of membership of the New Development Bank and also emphasized the significance of regional balance.
The Union Minister observed that G20, of which all the countries of BRICS are members, delivered some very essential initiatives in 2020 which includes the G20 Action Plan in response to the Coronavirus pandemic which also provided broad guidance in forming a collective global response to the health crisis.
Also, as the G20 Debt Service Suspension Initiative ensures support for addressing the liquidity needs of low-income countries, she noted that BRICS members have always played an essential role in ensuring that concerns of developing countries have been properly reflected in the initiatives.
The minister also added that a consensus solution will be playing an essential role in ensuring equity, fairness, and sustainability of tax systems.
Creation of the New Development Bank:
The New Development Bank was created in 2014 by BRICS countries- Brazil, Russia, India, China, and South Africa. It was created as a multilateral development bank that aims at providing financial support to private and public projects through guarantees, loans, equity participation, or other various financial instruments.
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