Algeria- The Algerian Ministry of Finance announced that Algeria’s accession to the BRICS Bank was officially approved at the conclusion of the ninth annual meeting of the Board of Governors of the New Development Bank (NDB), which was held on Saturday, August 31, in Cape Town, South Africa.
The Algerian Ministry of Finance considered Algeria’s accession to this important development institution, which is considered the financial arm of the BRICS group, a major step towards integration into the global financial system, making Algeria the ninth country to join the New Development Bank.
Last April, Algerian Finance Minister Laaziz Fayed discussed in Washington with Dilma Vana Rousseff, President of the New Development Bank, the progress of Algeria’s accession to this international financial institution. The two parties also discussed the potential for future cooperation between the bank and Algeria in financing strategic and structural development projects for the Algerian economy.
Algerian President Abdelmadjid Tebboune revealed at the end of his visit to China last year that Algeria had officially requested to join the BRICS bank as a member, with an initial contribution of $1.5 billion.
geopolitical dimension
The economic expert and international consultant in economic development, Abdel Rahman Hadef, considered that Algeria’s official accession to the BRICS Bank “carries a geopolitical dimension represented in its acquisition of a position in one of the major financial mechanisms that will have a role in shaping the international financial system in the future.”
Speaking to Al Jazeera Net, Hadef stressed that Algeria’s accession to the BRICS Bank will allow for accelerating the path to achieving the country’s first strategic goal during the intermediate stage, which is to catch up with emerging countries, in addition to accelerating the path of development according to a new approach and model in the field of economic development, which will be achieved by Algeria benefiting from the experiences of the bank’s member states and concluding partnerships with them, then integrating into global value chains.
Project Financing
Abdel Rahman Hadef said that Algeria’s presence in the BRICS Bank will enable it to conclude partnerships with countries that share the same visions, in addition to obtaining financing related to major structural projects and infrastructure projects in particular, such as road, port and railway projects, according to a new vision that enhances Algeria’s regional integration, especially with Arab and African countries.
For his part, the economic and financial expert, Abu Bakr Salami, confirmed that Algeria’s joining the BRICS Bank has many positives, as it is a financial institution that provides many services to its members in the form of loans and loans without interest or with low interest, which Algeria will benefit from, like other countries.
In his interview with Al Jazeera Net, Salami said that among the implications of Algeria’s joining the BRICS Bank is that “the Algerian economy is in good health, which will provide economic and financial support to Algeria.”
Increase the percentage of participation in the bank’s capital
Salami returned to Algeria’s participation in the capital of the new development bank, which will give it the authority to express an opinion on the decisions taken by this bank with future prospects.
The economic and financial expert considered that the only challenge facing Algeria with its joining this financial institution is to increase its share in the BRICS capital and the necessity of maintaining the financial situation that allows it to keep pace with the decisions taken by this bank, such as increasing the capital or providing aid and loans according to the bank’s work policy, up to the decisions related to the BRICS currency, which is mainly related to the percentage of participation in the bank’s capital.
