Inauguration ceremony will take place during Lula's trip to China

The former president of the Republic Dilma Rousseff was elected this Friday (24) president of the New Development Bank (NDB), also known as Banco do Brics. She replaces Marcos Troyjo, former special secretary of the former Ministry of Economy, who held the post since July 2020.

Dilma will preside over the NDB until July 2025, when Brazil's term in charge of the financial institution, which is headquartered in Shanghai, China, ends. An official inauguration ceremony for Dilma is scheduled for the end of next week, during President Luiz Inácio Lula da Silva's trip to China.

Headquarters of the NDB (Brics Bank), which will be commanded by former president Dilma Rousseff - Reuters/Bai kelin/Rights Reserved

Although the bank announced the replacement of Troyjo by Dilma on the last 10th, the election on the bank's Board of Directors only took place this Friday. Each BRICS country – Brazil, Russia, India, China and South Africa – chairs the bank for five-year rotating terms.

“As president of Brazil, Dilma Rousseff has focused her agenda on ensuring the country's economic stability and job creation. In addition, during his government, the fight against poverty took priority, and the social programs initiated under the terms of President Luiz Inácio Lula da Silva were expanded and recognized internationally. As a result of one of the most extensive poverty reduction processes in the country's history, Brazil was removed from the United Nations Hunger Map”, highlighted the NDB in a note.

The communiqué also recalled that, during her government, Dilma promoted respect for the sovereignty of countries and the defense of multilateralism, sustainable development, human rights and peace. The text highlighted that the former president expanded cooperation with several countries in Latin America, Africa and Asia, participated in the foundation of the NDB in 2014 and had a decisive presence in the Paris Agreement on the environment in 2015.

Lula participates in Dilma Rousseff's inauguration at BRICS Bank

In their speeches, they emphasized the social role of the bank

At Dilma Rousseff's inauguration as head of the New Development Bank (NDB), in Shanghai, China, Brazil’s President Luiz Inácio Lula da Silva strongly criticized the traditional model used by international financial institutions. 

The New Development Bank was established in December 2014 as a joint initiative of the BRICS countries - Brazil, Russia, India, China, and South Africa - with the aim of increasing funding for infrastructure and sustainable development initiatives in member countries and other emerging economies.

"For the first time a development bank with a global scope has been established without the participation of developed countries in its initial phase. Therefore, it is free from the chains and conditionalities imposed by traditional institutions on emerging economies. Additionally, the NDB has the unique ability to finance projects using local currency,” Lula said.

In the opinion of the Brazilian president, the NDB has a crucial role to play in helping to address the impacts of climate change and economic challenges on the world's most vulnerable countries. "The effects of climate change, the ongoing pandemic, and armed conflicts have had an impact on those who are most vulnerable. Many developing countries are burdened with debts that they cannot repay. In this context, the establishment of the NDB is essential."

At the ceremony also attended by the members of Lula's delegation on his official trip to China, the president did not hesitate to criticize the IMF, accusing the organization of "strangling" Argentina. He emphasized that banks should exercise patience and keep the word "tolerance" in mind when renewing financing agreements. " No leader can effectively govern when they have a knife at the throat because the country has debts," he stated. 

Dilma Rousseff

During her inauguration speech, Dilma Rousseff highlighted the NDB's social mission and the bank's commitment to protecting the environment, promoting development, and ensuring the inclusion of the poorest communities.

“Assuming the presidency of the NDB is an opportunity to further promote the interests of both BRICS and other emerging and developing countries," Rousseff stated. "I am confident that, by working together, we can carry out our vision of development. Our goal is to ensure prosperity to all nations," she added.

Currently, the NDB has approved approximately $32 billion worth of projects, $4 billion of which are earmarked for investment in Brazil, with a primary focus on transportation infrastructure such as highways and ports.

In 2021, the BRICS Bank welcomed four new member countries: Bangladesh, Egypt, the United Arab Emirates, and Uruguay.