BRICS New Development Bank to explore ‘expanded financing channels’
But there are doubts about the bank’s growth prospects since all BRICS members are grappling with economic slowdown or recession
Finance Minister Lou Jiwei on Wednesday called for the New Development Bank to explore new financing options, lure private capital and cut red tape in its first five-year plan to shore up the global clout of the infrastructure-focused lender established by BRICS nations.
Expanding financing channels for the bank has been a recurring topic among the five member nations Brazil, Russia, India, China and South Africa during the lender’s two-day first annual meeting in Shanghai, which ends today.
“New financing channels shall be sought after, including attracting policy institutions, commercial banks, insurers and private capital through public-private partnership,” Lou said at the opening ceremony.
He said BRICS nations faced difficulties attracting foreign capital in the challenging global economy and called for the bank to develop local-currency business to secure stable and low-cost capital.
The lender raised 3 billion yuan (HK$3.5 billion) from a green bond issue in Shanghai on Tuesday, with subscriptions exceeding 9 billion yuan.