New Development Bank Bill, 2023 passed in JS to get BRICS funds
Bangladesh
The New Development Bank Bill, 2023 was passed in Parliament on Wednesday to welcome funds from the lending arm of BRICS.
Law Minister Anisul Huq, in the absence of Finance Minister AHM Mustafa Kamal, moved the Bill in Parliament.
Later, it was passed by voice vote.
According to the objective of the Bill, the BRICS alliance consisting of Brazil, Russia, India, China and South Africa established a multinational bank called the New Development Bank (NDB) in 2014 by signing the Agreement on the New Development Bank.
Currently, there are five founding members and a total of eight countries including Bangladesh, the United Arab Emirates and Egypt are its members.
According to the bank's Articles of Agreement, the Agreement on the New Development Bank needs to be ratified.
The main objective of establishing the New Development Bank is to provide financial support to developing countries for the implementation of infrastructure and sustainable development projects.
The authorised capital of the bank is $50 billion, of which paid-in-shares are $10 billion and callable shares are $40 billion.
The total share of Bangladesh is 9,420, and the amount of subscription is $942.00 million as paid-in capital.
The amount payable by Bangladesh is $188.40 million (approximately Tk2,081 crore 82 lakhs), which is payable in seven instalments.
Bangladesh became a member of the bank on 16 September, 2021, by signing the 'Instrument of Accession'. According to Article 48 of the NDB's Articles of Agreement (AoA), the Agreement on the New Development Bank needs to be ratified.
According to the said ratification and like other multinational banks, the NDB will have to enact new laws to provide status, immunities, privileges and exemptions from taxes/VAT to achieve its objectives and activities.
The International Financial Organisation Order, 1972 for the IBRD and the IMF, the Asian Development Bank Order, 1973 for the ADB, the Islamic Development Bank Act, 1975 for the IDB and the International Finance Corporation for International Finance Corporation Act, 2015 and recently the Asian Infrastructure Investment Bank Act 2016 were enacted for the AIIB.
In this context, it is proposed to enact the New Development Bank Act, 2023.
Comments
While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.