Bangladesh joins New Dev Bank

Bangladesh will have to pay $188.4 million to the New Development Bank (NDB) as paid-up capital for being a member of the new international lender.

Sources at the finance ministry said yesterday after the ministry announced that Bangladesh had joined the NDB, a multilateral development bank established by the BRICS, an alliance of Brazil, Russia, India, China and South Africa.

Bangladesh is the first country to become a member of the bank despite being outside the BRICS since its establishment in 2015.

As a member, the country's total share in the bank will stand at $942 million. Of this, $753 million is authorised capital and the rest $188.4 million is paid-up capital, an official of the ministry said.

Bangladesh will have to pay $188.4 million in seven instalments in seven years.

It will be able to pay the $753 million through the purchase of bonds of the bank later.

Right now, the country's share in the bank stands at 1.84 per cent, the official said, adding that some other countries are likely to join the bank. However, Bangladesh's share will not go below 1 per cent.

Before making the payment of $188.4 million to the NDB, the government will have to pass a law to this effect.

Then, the country will be able to join the next board meeting of the bank, and from then on, Bangladesh will start getting loans.

The joining was confirmed on September 16 after Bangladesh submitted its instrument of accession to the government of Brazil, said the finance ministry in a press release.

NDB President Marcos Troyjo conveyed the matter to Finance Minister AHM Mustafa Kamal through a message and extended warm congratulations.

On August 20, the NDB board of governors approved Bangladesh as a new member.

Since its inception, the NDB has provided about $30 billion in loan assistance to member countries for 80 different projects related to physical and social infrastructure and urban development.