The government of Brazil views the development bank established by the BRICS bloc as an option to traditional financial institutions, the country’s head of state reported to African diplomats. President Lula da Silva similarly vowed that the bank will improve cooperation with its African counterpart.

Brazil Wants the New Development Bank Under BRICS to Strengthen as a Financing Instrument

Authorities in Brasilia consider the New Development Bank (NDB), created by the BRICS nations (Brazil, Russia, India, China, and South Africa), as a promising option to traditional financial institutions, Brazilian President Luiz Inacio Lula da Silva was quoted as speaking by the news agency.

Lula made the statement during a convocation with ambassadors from African countries. “ We require the BRICS bank to strengthen as an alternative instrument for financing, and we will reinforce our cooperation with the African Development Bank, ” he emphasized.

Current international financial and banking institutions ignore the requirements of developing nations and aren't capable of them, because numerous of those countries are being “ strangled by overwhelming debt burdens, ” he elaborated on Thursday.

The BRICS countries substantiated the NDB, formerly called the BRICS Development Bank, after signing an agreement in Fortaleza, Brazil, in the summer of 2014, when Dilma Rousseff was President of Brazil. In March 2023, she was elected president of the bank.

The BRICS development bank funds structure and sustainable development projects in the bloc’s member states and evolving countries. In 2021, the NDB admitted Bangladesh, Egypt, the United Arab Emirates, and Uruguay to the scope of its conditioning.

Closely 100 projects for nearly $33 billion have been approved by the bank since its launch in areas similar to transport, water supply, clean energy, digital and social structure, and urban construction, the report remarked.

In April of this year, the Shanghai- headquartered bank published it has issued its initial “ green ” bonds in U.S. dollars in the quantum of $1.25 billion. The proceeds from the placement will be utilized to finance or refinance eligible “ green ” projects in participating nations.

(Lubomir Tassev, Bitcoin.com, 2023)