BRICS Bank. Photo: silkroadnews
Financing for infrastructure development
The New Development Bank (NDB), founded by the BRICS economic bloc, has announced the approval of a US$1 billion loan to improve water and sanitation infrastructure in South Africa. This decision was taken at the annual general meeting of the NDB held in Cape Town.
Purpose of the loan and program
According to a statement from the NDB, the funding will go towards implementing the South African Municipal Infrastructure Grants programme. The program aims to reduce the infrastructure backlog and improve access to basic services for poor households.
Other financial decisions
In addition, the bank approved a loan equivalent to $150 million in yuan to China’s Financial Leasing Co., which will be used for a liquefied natural gas (LNG) transportation project. This credit will help meet the significant demand for LNG in China.
View policies and credit lines
The NDB also approved a revised policy on sovereign and sovereign-guaranteed loans. The policy changes are designed to improve the efficiency of project approvals. In addition, a credit line of up to $1.5 billion was approved, but without further details. A possible expansion of the bank’s membership was also discussed, but the details of this issue were not disclosed.
According to a Bloomberg report, NDB’s decision underscores the bank’s commitment to support infrastructure development in developing countries through strategic financial investments and policy revisions.
