BRICS bank provides $10bn in emergency assistance to fight pandemic

The potential of the BRICS nations is unique, and the group’s New Development Bank (NDB) is showing high financial efficiency during the global Covid19 crisis, Russian representatives at the Sixth BRICS Parliamentary Forum said. Approximately 60 projects in BRICS countries totalling about $20 billion have been approved, the chairman of the Russian State Duma, Vyacheslav Volodin, who chaired the virtual event via videoconference on Tuesday, said. The NDB has responded to the pandemic in a timely and effective manner and announced the creation of a special lending mechanism to deal with the aftereffects of the coronavirus pandemic, according to the chairwoman of Russia’s Federation Council, Valentina Matviyenko. She said that in total, $4 billion has already been allocated for projects to assist in the recovery of the BRICS economies, with the entire aid package exceeding $10 billion. In April, the bank established the Emergency Assistance Facility to meet the needs of its member countries. Emergency loans could be used to finance direct expenses related to the fight against the Covid19 pandemic or provide support for government measures contributing to economic recovery.

The Shanghaibased NDB, which was established in 2014, provides funding for infrastructure and sustainable development projects in emerging economies. With capital of up to $100 billion, it aims to continue issuing financial products denominated in the local currencies of its member countries – China, Russia, Brazil, India, and South Africa.