The New Development Bank Bill, 2023 was passed in Parliament on Wednesday to welcome funds from the lending arm of BRICS.
Law Minister Anisul Huq, in absence of Finance Minister AHM Mustafa Kamal, moved the Bill in Parliament.
Later, it was passed by voice vote.
According to the objective of the Bill, the BRICS alliance consisting of Brazil, Russia, India, China and South Africa established a multinational bank called the New Development Bank (NDB) in 2014 by signing the Agreement on the New Development Bank.
Currently, there are five founding members and a total of eight countries including Bangladesh, the United Arab Emirates and Egypt are its members.
According to the bank's Articles of Agreement, the Agreement on the New Development Bank needs to be ratified.
The main objective of establishing the New Development Bank is to provide financial support to developing countries for implementation of infrastructure and sustainable development projects.
The authorised capital of the bank is $50 billion, of which paid-in-shares are $10 billion and callable shares are $40 billion.
The total share of Bangladesh is 9420, and the amount of subscription is $942.00 million as paid-in capital.
The amount payable by Bangladesh is $188.40 million (approximately Tk. 2081 crore 82 lakhs), which is payable in seven instalments.
Bangladesh became a member of the bank on September 16, 2021 by signing the 'Instrument of Accession'. According to Article 48 of the NDB's Articles of Agreement (AoA), the Agreement on the New Development Bank needs to be ratified.
According to the said ratification and like other multinational banks, the NDB will have to enact new laws to provide status, immunities, privileges and exemptions from taxes/VAT in order to achieve its objectives and activities.
The International Financial Organisation Order, 1972 for the IBRD and the IMF, the Asian Development Bank Order, 1973 for ADB, the Islamic Development Bank Act, 1975 for the IDB and the International Finance Corporation for International Finance Corporation Act, 2015 and recently the Asian Infrastructure Investment Bank Act 2016 were enacted for the AIIB.
In this context, it is proposed to enact the New Development Bank Act, 2023.