New Delhi [India], Apr 1 (ANI): The New Development Bank (NDB) and the European Bank for Reconstruction and Development (EBRD) have agreed to collaborate and exchange information in recognition of their mutual goal to foster sustainable development and infrastructure in the emerging markets of their respective regions of operations.
A Memorandum of Understanding setting out a strategic framework for cooperation between the two development banks was signed on April 1 during the second Annual Meeting of the NDB in New Delhi, India, by the presidents of the two institutions, K.V Kamath of the NDB and Suma Chakrabarti of the EBRD.
The two parties agree to maintain a continuous working relationship, including consultations on senior level, exchange of information and potentially staff swaps.
The EBRD and NDB already have an active exchange of knowledge and information since the creation of the New Development Bank in 2014.
The two institutions are some of the newest additions in the family of multilateral development finance.
The EBRD is a multilateral development bank set up in 1991 after the fall of the Berlin wall to foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative in emerging Europe. Since then, the bank's region of operations has grown to include more than 35 countries from Morocco to Mongolia and from Estonia to Egypt.
The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in Brazil, Russia, India, China and South Africa (BRICS) and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships. In 2016, the Board of Directors of the NDB approved seven investment projects in the areas of green and renewable energy and transportation for a total of over USD 1.5 billion.
"The EBRD believes that the global development goals can only be met through joint efforts by multilateral banks, donors and the private sector. As one of the youngest and still growing development banks, the EBRD has always been eager to offer its expertise and support to new partners. With the NDB we share a vision not only of sustainable infrastructure, but also of green energy, which ultimately benefits the global economy. So I am very pleased to sign today's agreement," said EBRD President, Suma Chakrabarti.
"It is a pleasure to sign a Memorandum of Understanding between the NDB and the EBRD that formalises and deepens our partnership. The EBRD has been working closely with the NDB during its establishment process," said NDB President K.V Kamath.
"The Memorandum signed today further strengthens our cooperation, allows the NDB to tap into the expertise of the EBRD and strengthens the NDB's capacity to assess and implement projects," added Kamath.
He further added that the NDB is striving to be closer to the needs of our members and to respond quickly and flexibly. We believe that in order to provide the best possible products and services to our members, partnerships with key national and global institutions are essential.
The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.
The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players. In 2016, the Board of Directors of the Bank approved loans involving financial assistance of over USD 1.5 bln for projects in the areas of green and renewable energy, and transportation. All projects are coherent with the Bank's mandate of supporting infrastructure and sustainable development projects.
The EBRD is a multilateral bank committed to the development of market-oriented economies and the promotion of private and entrepreneurial initiative in more than 30 countries from Morocco to Mongolia and from Estonia to Egypt.
The bank is owned by 65 countries, the EU and the EIB. The EBRD's strategic plan for the countries where it invests for the period 2016-18 has three priorities: strengthening economic resilience, addressing global challenges and supporting regional integration. Follow us on the web, Facebook, LinkedIn, Instagram, Twitter and YouTube. (ANI)