New BRICS Development Bank To Spur Growth Among Developing Countries

The New Development Bank is a prime lending bank that will challenge the monopoly of developed economies in providing international finance and can promote innovative mechanism to become more responsive according to the demands.

New Delhi (Sputnik) – The New Development Bank (NDB) or BRICS Bank, which was established in July 2014, to extend loans initially to its five members – Russia, India, China, South Africa and Brazil, is set to offer long term funding to other emerging economies that have shared economic principles.

In fact, NDB can play a major constructive role in developing economies as the bank is willing to provide long-term finance to non-BRICS emerging economies.

“The New Development Bank will definitely spur the growth process among the BRICS countries. Since the basic objective of the NDB is the funding of infrastructure projects, I think it is very essential as BRICS countries like India and Brazil need support to build its infrastructure. Besides that, the New Development Bank can also help in integrating the BRICS economies. Further it could promote trade and investment among the BRICS countries. NDB came into existence during the Russian chairmanship of BRICS and I think Russia can play a major role in shaping the bank,” Bhalchandra Mungekar, noted economist and Member of Parliament told Sputnik.