B’desh has no chance to become even shareholding member

September 28, 2014

Brics Bank
B’desh has no chance to become even shareholding member
Bangladesh’s hope to become a founder member of the New Development Bank, initiated by BRICS nations, is set to come to a naught as the country has even little chance to get the status of a shareholding member of the proposed bank, officials at the finance ministry apprehended. The latest findings of the finance officials came after Bangladesh missions in five BRICS countries in their recent communications to the economic relations division of the finance ministry made negative assessment, due mainly to the articles of NDB agreement.
The ERD in August had asked Bangladesh missions in Brazil, Russia, India, China and South Africa, the five founding members of the proposed bank, to pursue the interest of Bangladesh in becoming a founder member of the NDB.
Earlier, finance minister AMA Muhith had said Bangladesh was pursuing to become a founding member of the bank.
‘Our efforts have gone futile as BRICS nations are not interested to increase the number of founding members,’ an additional secretary of the ERD told New Age on Thursday.
The official, preferring anonymity, said the ERD had already appraised the finance minister about the latest negative outcome of the move undertaken by the country’s five foreign missions.
All the country’s five missions in BRICS capitals are of the opinions that Bangladesh even has very little chance to become a shareholding member of the new bank as its constitution restricted any easy and new access as shareholding member of NDB, the official said.
‘With regard to membership of the Bank and the contingent reserve arrangement (CRA), the agreement establishing the NDB provides that the founding members of the Bank are Brazil, Russia, India, China and South Africa. It also states that the membership shall be open to members of the UN, in accordance with the provisions of the Articles of Agreement of the New Development Bank. It shall be open to borrowing and non-borrowing members,’ reads a communication made from a Bangladesh mission in one of the BRICS nations.
The ERD officials, quoting another communication said the article of the new bank is highly conservative, even in offering shareholding membership to any country as the process is complicated and difficult.
‘While reiterating the above, the Articles of Agreement states that membership shall be open to members of the UN at such times and in accordance with such terms and conditions as the Bank shall determine by a special majority at the Board of Governors,’ reads the diplomatic communication on shareholding membership.
However, the ERD officials said Bangladesh could be an Observer at the best of the proposed bank.
The formal declaration of NDB was given in the ‘Fortaleza Declaration’ issued on July 15-16, this year in Fortaleza, Brazil. Brazil, Russia, India, China and South Africa signed the agreement to establish the NDB.
The new bank shall have an initial authorised capital of US$ 100 billion. The initial subscribed capital shall be of US$ 50 billion, to be equally shared among founding members.
Bangladesh is now shareholding members of World Bank, Asian Development Bank, Islamic Development Bank and International Monetary Fund.
BRICS represents 42 per cent of the world population and roughly 20 per cent of the world’s economy based on GDP. Total trade among the countries accounts for US$ 6.14 trillion, or nearly 17 per cent of the global total.
According to the agreement of NDB, the first chair of the board of governors shall be from Russia. The first chair of the board of directors shall be from Brazil. The first President of the Bank shall be from India. The headquarters of the Bank shall be located in Shanghai, China.

-With New Age input

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