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The New Development Bank (NDB) , formerly referred to as the BRICS Development Bank , is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa). According to the Agreement on the NDB, "the Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments." Moreover, the NDB "shall cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the Bank." The initial authorized capital of the bank is $100 billion divided into 1 million shares having a par value of $100,000 each. The initial subscribed capital of the NDB is $50 billion divided into paid-in shares ($10 billion) and callable shares ($40 billion). The initial subscribed capital of the bank was equally distributed among the founding members. The Agreement on the NDB specifies that every member will have one vote no o

The idea for setting up the bank was proposed by India at the 4th BRICS summit in 2012 held in Delhi. The creation of a new development bank was the main theme of the meeting. BRICS leaders agreed to set up a Development bank at the 5th BRICS summit held in Durban, South Africa on 27 March 2013. On 15 July 2014, the first day of the 6th BRICS summit held in Fortaleza, Brazil, the BRICS states signed the Agreement on the New Development Bank, which makes provisions for the legal basis of the bank. In a separate agreement, a reserve currency pool worth $100 billion was set up by BRICS nations. On 11 May 2015, K. V. Kamath was appointed as the President of the bank. The 7th BRICS summit in July 2015 marked the entry into force of the Agreement on the New Development Bank. On 27 February 2016, the NDB signed Headquarters Agreement with the Government of the P.R.C. and the Memorandum of Understanding with Shanghai Municipal People's Government concerning the arrangements in relation to

Corporate Governance edit According to the Articles of Agreement, the main organs of the bank are: Board of Governors Board of Directors President and Vice-Presidents Information about the composition of the NDB Board of Governors is available on the Bank's official website. The NDB President is elected on a rotational basis from one of the founding members, and there are four Vice Presidents from each of the other four founding members. K. V. Kamath, from India, is the first elected president of the NDB. He was replaced as president by Marcos Prado Troyjo from Brazil since 7 July 2020. Marcos Troyjo was elected president of the New Development Bank on 27 May 2020. Capital edit The New Development Bank has an initial subscribed capital of US$50 billion and an initial authorized capital of US$100 billion. The initial subscribed capital is be equally distributed among the founding members. The payment of the amount initially subscribed by each founding member to the paid-in capital

The Agreement on the New Development Bank entered into force in July 2015, with the official declaration of all five states that have signed it. The five founding members of the Bank include Brazil, Russia, India, China and South Africa. Bank's Articles of Agreement specify that all members of the United Nations could be members of the bank, however the share of the BRICS nations can never be less than 55% of voting power. Expanding the NDB's membership is considered by some experts to be crucial to its long-term development by helping boost the bank's business growth. According to the Bank's General Strategy: 2017–2021, the NDB plans to expand membership gradually so as not to overly strain its operational and decision-making capacity.

According to Articles of Agreement of the New Development Bank, the initial authorized capital of the bank is divided into 1 million shares, having a par value of $100,000. Each founding member of the bank has initially subscribed 100,000 shares, in a total of $10 billion, of which 20,000 shares correspond to paid-in capital, in a total of $2 billion and 80,000 shares correspond to callable capital, in a total of $8 billion. The current distribution of shares between NDB member countries is presented in the following table. Countries by Shareholding at the New Development Bank Country Number of Shares Shareholding (% of Total) Voting Rights (% of Total) Authorised Capital (billion USD)   Brazil 100,000 20 20 10   Russia 100,000 20 20 10   India 100,000 20 20 10   China 100,000 20 20 10   South Africa 100,000 20 20 10 Unallocated Shares 500,000 - - 50 Grand Total 1,000,000 100 100 100

Projects edit According to the Bank's General Strategy, sustainable infrastructure development is at the core of NDB's operational strategy in 2017–2021, and the Bank will dedicate about two-thirds of financing commitments in its first five years to this area. The New Development Bank is planning to give a priority to projects aimed at developing renewable energy sources. As it was stated by the Bank, it wants to cooperate with other institutions in accelerating ‘green’ financing expansion and promoting environment protection. The NDB has expressed interest in funding projects that conform to high environmental standards, including those in the field of infrastructure, such as energy, railways and highways in the future. At the same time, according to K. V. Kamath, the NDB President, one of the key strategies of the bank will be financing profitable projects (bankable) with return on capital. The NDB wants "to fund projects that are creative and bring benefits to the loca