‘New Development Bank Bill-2023’ has been passed in the Jatiya Sangsad to get loan facility from BRICS bank ‘New Development Bank’ in other currencies.
Law, Justice and Parliamentary Affairs Minister Anisul Haque proposed the passage of the bill in the National Parliament on behalf of the Finance Minister on Wednesday. Later, when the law minister proposed to pass the bill, the speaker said. Shirin Sharmin Chowdhury put the bill to voice vote. The New Development Bank Bill, 2023 was passed by voice vote.
In a statement on the purpose and reasons of the bill, the minister said, a multinational bank called the New Development Bank (NDB) was established by signing the ‘Agreement on the New Development Bank’ at the Sixth Summit held in 2014 by the BRICS alliance consisting of Brazil, Russia, India, China and South Africa. by establishing The main objective of establishing NDB is to provide financial support to developing countries for implementation of infrastructure and sustainable development projects. Currently there are five founding members and a total of eight countries including Bangladesh, United Arab Emirates and Egypt.
The law minister said that the authorized capital of this bank is 50 billion US dollars, of which paid-in shareholders are 10 billion US dollars and callable shares are 40 billion US dollars. The amount of gross shares of Bangladesh is 9,420 and the subscription amount is 942.00 million US dollars, of which the paid-in capital is 40 billion US dollars. As per Bangladesh, the amount payable is USD 188.40 million (about Tk 2081 crore 82 lakh), which is payable in seven installments.
In reference to this bill, the law minister said that if the member of the New Development Bank (NDB) formed under the initiative of BRICS, the alliance of five developing economies, loans will be available in currencies other than dollars. Hence the New Development Bank Bill, 2023 was brought in the National Parliament.
Mentioning that the bank has approved the loan to Bangladesh, he said that this bank is being made from the BRICS group. This is New Development Bank and those who become members of this bank can take loans from this bank. As soon as we make this bank law, they are ready to give us loans to Bangladesh as per our proposal. Only after passing this act we will become a member of that agreement and only after becoming a member we will be able to take that loan. That is why it is very important to pass this law, that is why this bill has been brought. The World Bank only lends in dollars. And the loan that will be given from this bank will not only be given in dollars, it is a flexible, stable pound, euro, dollar, ruble, yuan, this bank can give a loan in any currency. That’s why I think it is a modern bank.
Mentioning that this law is very necessary, the minister said that this law is absolutely necessary so that we can stay with the newly launched bank and get the benefits and the way to get the benefits has also been cleared.
Opposition members Mujibul Haque, Kazi Firoz Rashid, Fakhrul Imam, Shamim Haider Patwari, Hafiz Uddin Ahmed, Roshan Ara Mannan and independent member Rezaul Karim Bablu participated in the discussion in the process of passing the bill.
Earlier, the cabinet approved the agreement to join the BRICS Bank on July 17. This approval was given in the cabinet meeting at Prime Minister Sheikh Hasina’s office that day. After the meeting, Cabinet Secretary Mahbub Hossain explained the details to the journalists in the meeting room of the Ministry.
He said that in 2014 BRICS Summit announced a new bank called New Development Bank. The main objective of the establishment of this bank was to trade in accordance with the market system and to finance infrastructure sustainable development projects in developing countries.
Cabinet Secretary said, Bangladesh participates in this bank along with 8 countries. The participation agreement needed to be revised, with the cabinet on Monday (July 17) approving a proposal to ratify the agreement.
The New Development Bank (NDB) started its journey on July 21, 2015 under the initiative of BRICS, an economic alliance of five countries: Brazil, Russia, India, China and South Africa. NDB lends to developing countries as well as BRICS members for infrastructure and development projects.