BRICS' New Development Bank 'Has Solid Future' With 'Dozens of Countries Clamoring to Get on Board'
12:47 GMT 18.10.2024 (Updated: 13:43 GMT 18.10.2024)
© Sputnik / Sergey Bobylev
/ Subscribe
The New Development Bank (NDB), established by BRICS and formerly referred to as the BRICS Development Bank, should become the main investor for the Global South, Russian President Vladimir Putin has said in his address to the BRICS Business Forum in Moscow.
The demands for entities such as the NDB seem obvious, with veteran financial analyst Paul Goncharoff observing that “much of the world is truly at an inflection point in terms of geo-economic development and opportunities for unrestricted trade.”
“This is made even clearer when contrasted with the increasingly politicized demands made by traditional issuers of global credit in reserve fiat currencies, whose demands are far removed from the needs and requirements of the countries seeking financing in reasonably behaved currencies,” Goncharoff, general director of consulting firm Goncharoff LLC, adds.
NDB essentially will be able to provide countries assistance in the form of funding for various projects “without the baggage of undesired and unnecessary political bells and whistles,” the analyst explains.
“The NDB since its inception in 2015 has slowly, but steadily grown strong due to intent with which it was created, which is keeping to the basics of financing without the politization or weaponization of assets in play, and the increased use of national currencies instead of the ‘big three’,” Goncharoff notes.
Thus, what makes NDB more attractive than entities like the World Bank or the IMF in the eyes of many countries is the fact that the BRIC-founded bank does not require its clients to strictly adhere to “specific political positions to qualify for financing.”
This quality of NDB, Goncharoff suggests, “allows for the pragmatic and serious business of getting projects financed and completed without distractive noises, posturing, and in currencies that are conducive to free trade.”
“It is as simple as that - comparatively speaking the NDB has all the ingredients to make a huge positive difference for many of the world's growing economies without saddling them with issues that are simply not priorities for them locally. This concept has a solid future and it is not surprise that dozens of countries are clamoring to get on board,” he remarks.
