The New Development Bank (NDB) of BRICS launched business in Shanghai on Tuesday. The BRICS countries include the world's major emerging economies: Brazil, Russia, India, China and South Africa. The grouping was originally known as "BRIC" before the inclusion of South Africa in 2010.
The NDB will supplement the existing international financial system in a healthy way and explore innovations in governance models, Lou said at a seminar following the ceremony.
Here are some facts you need to know about BRICS New Development Bank
- BRICS New Development Bank (NDB) launched in Shanghai on July 21, 2015.
- The NDB will lend money to developing countries to help finance infrastructure projects.
- It is seen as an alternative to the World Bank and the International Monetary Fund (IMF).
- The NDB is expected to issue its first loans early next year.
- The bank is to start out with a capital of $50bn (£32bn) though the amount is to be doubled in the coming years.
- China, the second largest economy of the world will be the biggest contributor in NDB.
- The NDB is to be headed by a rotating leadership.
- On May 11, 2015, KV Kamath from India has been appointed as first president of NDB.
- NDB was first proposed in 2012 but protracted negotiations over headquarters, management and funding have long delayed the actual launch.
- The New Development Bank will be headquartered in Shanghai, China.
- The New Development Bank was agreed to by BRICS leaders at the 5th BRICS summit held in Durban, South Africa on 27 March 2013.