Search form

Login - Register | FOLLOW US ON

Logo of Phnom Penh Post newspaper Phnom Penh Post - PM says BRICS bank to ease dependency

PM says BRICS bank to ease dependency

Prime Minister Hun Sen yesterday applauded the recent creation of the BRICS New Development Bank (NDB), saying it could ease Cambodia’s dependence on institutions such as the World Bank and the International Monetary Fund (IMF).

BRICS member nations Brazil, Russia, India, China and South Africa announced the creation of the NDB during the 6th BRICS Summit last month. Similar to the World Bank, the NDB has a mandate to provide funding to the world’s least developed economies and assist in development projects.

“The BRICS bank, which is a big bank, does not fully replace the role of World Bank and the IMF, but it adds another power to help the poor countries and reduce reliance on the one place for funding,” Hun Sen said.

The NDB will be based in Shanghai and operate off an initial capital base of $50 billion, with each BRICS nation contributing $10 billion before the total eventually rises to a planned $100 billion.

“The establishment of the bank will reduce the monopoly of some institutions and will expedite the development of the poor countries to become bigger,” the prime minister said.

“It is a good situation and we also need it as we are a small country,” he added.

A spokesman for the World Bank in Cambodia welcomed the NDB, saying that it was ready to work closely with the new bank on future projects in the Kingdom.

“Clearly, the BRICS countries have a key role to play in helping promote global growth,” the World Bank spokesman said.

“A major part of the World Bank’s strategy is to partner with regional development banks, international organisations, national governments and stakeholders to enhance the effectiveness of our collective work.”

Membership in the BRICS bank will be open to all UN members. The new financial institution is expected to begin operations as early as next year.

The IMF did not return requests for comment.

0

Comments

Please, login or register to post a comment

Latest Video

Phnom Penh eats: Homegrown veggies at Bayon Beoung Snor

​Nestled along National Road 1, Bayon Beoung Snor is a farm-cum-restaurant. The team grows their own vegetables, which they then use to whip up traditional Khmer food.

Bill Clough reflects on The Phnom Penh Post's 25 year history

The Post's publisher Bill Clough, under whose leadership the publication went from a fortnightly to a daily one, discusses his investment in Cambodia, his vision for the paper in an increasingly digital age,

People search for their names on the voter lists at a polling station in Kampong Cham’s Veal Vong commune earlier this month.

Four years ago, when the opposition snatched Kampong Cham away from the ruling party in 2013 national elections, it hinted at a deeper shift taking

Comfrel Executive Director Koul Panha speaks to the press at a meeting yesterday in Phnom Penh.

As the National Election Committee launched into the recount proc