What's next for Colombia after being admitted to the New BRICS Development Bank?

Colombia became this Thursday the first non-founding South American country of the BRICS bloc (made up of Brazil, Russia, India, China and South Africa) to join the New Development Bank (NDB) chaired by Dilma Rousseff .

The New BRICS Development Bank was created in 2015 by member countries as an alternative to the World Bank and the International Monetary Fund (IMF ), entities traditionally linked to the United States.

Foreign Minister Laura Sarabia described the accession as a "broadening of horizons" for the country. "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. We continue to pave the way for new opportunities for the country," she stated.

Finance Minister Germán Ávila Plazas indicated that Colombia seeks to access loans to finance infrastructure, health, renewable energy, and sustainable development projects.

The above was stated this Thursday from the official presidential accounts: " This accession opens new financing opportunities for strategic projects and is a key step to diversify alliances and strengthen the country's economy ," reads a tweet.

"This is important economic news for the country, opening up new horizons at a global moment that demands efforts to end dependencies and diversify markets," said former ambassador and presidential candidate Camilo Romero.

From the Historic Pact, the ruling party, they highlighted the benefits this would have for the country. " In the midst of a tariff war, dependence on traditional markets in the US is reduced and new trading partners can be explored (...) The New Development Bank offers loans at preferential rates for infrastructure, education, and sustainable development. Colombia has already presented the 120-km interoceanic railway between the Pacific and Atlantic as a key project. Energy transition projects are also being proposed," said Senator María José Pizarro.

Colombia is willing to subscribe for 5,125 shares of the bank's authorized capital, equivalent to a financial commitment of $512.5 million. Of this amount, the Colombian government indicated that $410 million corresponds to callable capital (which serves as collateral) and $102.5 million to paid-in capital, i.e., cash. The first disbursement would be made within six months of the signing of the accession agreement.

The request was made by President Gustavo Petro during his last visit to China in May, where a memorandum of understanding was also signed to join the Belt and Road Initiative (Silk Road).

" Today, what we're doing is precisely opening doors to other places where they can give us better loans at better rates, impose fewer conditions, and, most importantly, lend us money for things we don't have, " was the message from Alejandro Toro, president of the Second Commission of the Chamber and representative of the Historic Pact.

However, this entry does not mean that Colombia is now a member of the BRICS bloc. Although there have been overtures, this step has not been consolidated, but it is not ruled out that Brazilian President Luiz Inácio Lula da Silva will insist on convincing President Petro.

Juan Pablo Penagos Ramirez