NDB receives $750m from member countries
Updated: 2016-01-15 14:11
By Zhao Tingting(chinadaily.com.cn)
The New Development Bank (NDB) has received the first installment of the $750 million paid-in capital from its five founding member countries, according to the bank's press release on Thursday.
The NDB, a bank launched by Brazil, Russia, India, China and South Africa (BRICS), was officially established on July 21, 2015 in Shanghai. India's KV Kamath was chosen as the bank's president.
The capital that shareholders contribute to come in two forms namely paid-in capital, which requires the payment of cash to the bank, and callable capital which is capital that shareholders agree to provide when necessary, said the press release.
"The contribution of paid-in capital from the founding members reinforces the commitment of the BRICS countries in operating the activities of the bank," said KV Kamath.
Paid-in capital forms the core element of a multilateral development bank's shareholders equity. The total paid-in capital during the first phase of the NDB's incorporation ($10 billion) would be paid over seven installments. The NDB has a callable capital commitment of $40 billion from its five member countries.
The first batch of projects for the bank is expected to be implemented by April 2016.
The NDB, together with the Asian Infrastructure Investment Bank, will become an important force in the world to advance infrastructure construction and sustainable development.