World Economy

NDB Head Office in Shanghai

NDB Head Office in ShanghaiNDB Head Office in Shanghai

The New Development Bank set up by the BRICS countries—Brazil, Russia, India, China and South Africa—on Saturday signed an agreement with China to place its headquarters in Shanghai, according legal status to the multilateral bank headed by eminent Indian banker K.V. Kamath.

The agreement was signed by Chinese foreign minister Wang Yi and Kamath at a special ceremony, which was attended by the Reserve Bank of India Governor Raghuram Rajan and International Monetary Fund chief Christine Lagarde. The bank also signed a separate memorandum of understanding with the local municipal government headed by Mayor Yang Xiong, PTI reported.

The agreements accord legal status to the NDB under the Chinese regulations to function from the country. The documents were signed on the sidelines of a meeting of G20 finance ministers and central bank governors in this Chinese financial hub in the presence of heads of delegations of BRICS nations, ambassadors and central bank governors and the heads of other multilateral development institutions and international organizations.

Indian ambassador to China Vijay Gokhale also attended the ceremony. “Today’s agreements related to our headquarters in Shanghai are a landmark step in our nascent journey as a development bank. With this we are now ready for business and we look forward to building an institution of repute in the course of time,” Kamath said.

The NDB established by the five BRICS members began functioning in Shanghai last year. The bank commenced operations with an initial subscribed capital of $50 billion with total paid-in capital of $10 billion. The founding members of the NDB have already brought in capital of $1 billion as initial contribution. The new bank will start issuing loans to green energy ventures and infrastructure projects from April this year.