Shanghai, China (BBN)– BRICS New Development Bank (NDB) began its operations in Shanghai, China’s largest city, on Tuesday, reports Xinhua news agency.
The agreement to establish the NDB, with an initial capitalization of $100 billion, was signed by the BRICS member states — Brazil, Russia, India, China and South Africa — during the group’s 6th summit in Fortaleza, Brazil in July 2014. The bank was officially launched at the last BRICS summit in the Russian city of Ufa earlier this month.
The NDB’s main purpose is to finance infrastructure projects and promote sustainable development in BRICS member states and other emerging economies.
In July, the central banks of BRICS member states signed an agreement establishing the terms for mutual support within the framework of the NDB $100-billion reserve currency pool, designed to assist member countries at times of currency liquidity crises.
On July 9, President designate of the BRICS New Development Bank Kundapur Vaman Kamath told Sputnik the NDB will approve its first infrastructure projects in April 2016.