Colombia joins BRICS New Development Bank

By Laura Gamba

BOGOTA, Colombia (AA) - Colombia announced Thursday that it has been admitted to the New Development Bank of the BRICS economic bloc.

"I celebrate this news, which transcends financial matters and broadens our horizons. Colombia officially joins the BRICS bank led by Dilma Rousseff, following the request made by President Gustavo Petro in Shanghai," Colombian Foreign Minister Laura Sarabia said on her X account.

Petro formally requested this membership during a May meeting with Rousseff in Shanghai, where a memorandum of understanding was also signed for Colombia to join China's Belt and Road Initiative.

Petro presented Rousseff with a letter from Colombia's Finance Minister, German Avila, expressing the country's interest in becoming a borrowing member of the BRICS bank. Avila indicated Colombia's willingness to subscribe to 5,125 shares of the bank's authorized capital, a financial commitment of $512.5 million.

Of this, $410 million is callable capital (serving as collateral), and $102.5 million is paid-in capital, meaning cash. The initial disbursement is expected within six months of signing the membership agreement.

By joining the banking sector, Colombia has access to resources and loans for national projects without being a member or having a vote at the bloc's summits.

According to Petro, the initiative aims to find financial alternatives to traditional institutions like the International Monetary Fund (IMF) and the World Bank.

The Presidency said that "joining this entity would allow Colombia to access loans with favorable conditions and strengthen its response capacity to challenges such as climate change and global economic crises."

BRICS consists of Brazil, Russia, India, China and South Africa.