The New Development Bank (NDB), commonly called the BRICS bank, has officially authorized a new country to join the ranks. The multilateral bank, which was launched in 2015 to provide loans for developmental projects among BRICS nations is now expanding. The expansion will allow other developing countries to receive funds for projects and not be dependent on the World Bank.
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This puts the BRICS bank in a unique position as NDB is looking to fund emerging economies. The NDB disburses project-based loans for building seaports, highways, and airports, among other developmental aspirations. The bank earns interest as developing nations pay up after an agreed date to clear payments.
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BRICS Bank Officially Allows Algeria To Join the NDB
The BRICS bank (NDB) has officially allowed Algeria to join the ranks and become a member. Algeria is now inducted into the NDB in the latest expansion drive from the alliance. “We have a process to authorize new members to the bank. Algeria was authorized to become a member of the bank,” said NDB President Dilma Rousseff to Reuters.
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The last time the BRICS bank went into an expansion mode was in 2021, when it inducted Bangladesh, Egypt, the United Arab Emirates, and Uruguay. The four countries were authorized to join three years ago and receive loans for developmental projects.
While the BRICS alliance is looking at expansion, the bank is also on a similar path. Moreover, several countries in Africa, Asia, and Eastern Europe have received funds for projects through the NDB. Also, BRICS member India took $500 billion in loans to fund road projects across the state of Gujarat in January 2024.
Recent reports indicate that BRICS bank could make $500 billion disbursing loans in 2024 alone. The move could make the alliance more powerful financially and not be dependent on the World Bank.