- The New Development Bank is having trouble finding dollar funds to repay debts, the Wall Street Journal said.
- It was established by the BRICS bloc of nations to offer alternatives to dollar lending.
- But its own finances were deeply reliant on Wall Street, which backed away after the Ukraine war.
A development bank established by the BRICS bloc of nations to reduce reliance on US dollar loans is having trouble finding dollars to repay its own debts, sources told the Wall Street Journal.
Based in Shanghai, the New Development Bank has largely ceased issuing new loans, the report said.
The institution came about eight years ago through the collective effort of the BRICS: Brazil, Russia, India, China, and South Africa.
It was meant to establish an alternative to US-dominated, dollar-based financial institutions like the International Monetary Fund and dovetailed with Beijing’s efforts to erode the greenback’s status. Its lending was aggressive, and committed loans climbed from $1 billion in 2017 to $30 billion in 2022.
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