The Lending Policy Of New Development Bank-A Primary Design

With the joint effort of the BRICS, the New Development Bank(NDB), which has been prepared for 3 years, was announced to open in July 2015. As an important part of BRICS cooperation regime, this new development institution was designed to address the insufficient fund for infrastructure and development projects in developing countries, and to improve the global development network. As the approval of 2030 Sustainable Development Agenda, NDB is going to play a critical role in providing support for developing nations in eliminating extreme poverty and inequality, protecting human rights and natural resources, and other 15 sustainable development goals(SDGs). However, that must depend on that NDB has a functional and comprehensive financing project designs and operation procedure.Therefore, this paper chooses the lending policy as the study subject, as well as the financing policy of World Bank as the reference. Besides, NDB should also take the experience of official loans of BRICS into consideration to raise its adaptability and pertinence.In this paper, the NDB loan targets for the infrastructure and sustainable development projects in developing countries, which can be provided in the forms of capital, technology and training. The design of each lending agreement, which should base on the principles of non-interference, localization and efficiency, is composed of 4 major stages – application, disbursement, appraisal and recovery. This paper further discusses the setting of conditionalities, safeguard policies, outreach institutions, and methods to improve efficiency.As for the meaning of this research, on the one hand it provides some thoughts for NDB in designing its official lending policy, on the other hand it provides help for better coordination and cooperation among BRICS. Furthermore, NDB’s lending policy will become an example for other newly-founded development institutions and a real complement for the international economic order.