BRICS Bank Provides Loan for the First Time in 2024, Lends $500 Million

Vinod Dsouza
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Source: NDB

BRICS bank, commonly called the ‘New Development Bank’ (NDB) extended its wings for the first time in 2024 providing a $500 million loan. NDB is lending $500 million to India to fund road projects across the state of Gujarat in January 2024. The loan from the BRICS bank will be used to build infrastructure for nearly 13,500 kilometers across the rural areas of Gujarat. The roads will be built with innovative and resilient designs that can withstand harsh climates.

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This is the first loan that the BRICS bank disbursed in 2024 for a tune of $500 million and India is the beneficiary. Vladimir Kazbekov, the Chief Operating Officer of BRICS bank NDB said the MoU will be signed with the Indian state. A part of the funds will also be used to make geosynthetics, geotextiles, geogrids, and lime stabilization.

“The NDB has approved a loan of $500 million for enhancement of approximately 13,500 of rural roads in Gujarat. The roads will be built with innovative and climate resilient designs. Such as nature-based solutions and bio-engineering measures to improve their ability to withstand extreme climatic events,” Kazbekov said.

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BRICS Bank: NDB In Talks With Saudi Arabia For Fresh Funds

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The NDB was in contact with Saudi Arabia since may 2023 to receive fresh funding from the Kingdom. In October last year, BRICS strategically inducted Saudi Arabia into the alliance making it a part of the bloc. The Kingdom has more flexibility to provide funding for the BRICS bank as its now a member country.

Also Read: BRICS: Russia & Iran End SWIFT, Start Bank Transfers in Local Currency

BRICS induced five new countries Saudi Arabia, the United Arab Emirates (UAE), Egypt, Iran, and Ethiopia this year. Argentina is the only country that declined BRICS membership as the newly-elected President Javier Milei is skeptical about the alliance. Read here to know why Argentina rejected BRICS membership and does not want to be a part of the grouping.