News and more

Keep Updated On The Progress

  • Tuesday, 11 June 2024

Professor NK Singh, President of the Indian Institute of Economic Growth, Commends the Timing of the NDB Seminar in Egypt

President of the Indian Institute of Economic Growth: Awareness of the Importance of New Financial Institutions is Necessary... Financing Paths for the 2030 Development Agenda Face Significant Challenges

Professor NK Singh, Chairman of the 15th Financial Committee, and President of the Institute for Economic Growth in India, extends gratitude to H.E. President Abdel Fattah El-Sisi for his patronage of the New Development Bank Seminar in Egypt, which commenced today and is organized by the Ministry of International Cooperation, commending the significance of the timing of this seminar's commencement.

He also applauded the efforts of H.E. President Abdel Fattah El-Sisi to enhance Egyptian-Indian relations and his two visits to India, which led to the realization of the full potential of Egyptian-Indian relations, expressing gratitude to H.E. Dr. Mostafa Madbouly, the Prime Minister.

Furthermore, the President of the IEG in India affirmed that the seminar is held under the theme "Navigating New Horizons," leading us towards focusing on rebuilding the global financial system, discussing the rights, obligations, and measures for multilateral banks, emphasizing the importance of awareness regarding the role of new financial institutions, which must be internationally accepted, while enhancing their capabilities to attract global capital.

He pointed out that the NDB has created multiple platforms in various countries, and there should be international cooperation instead of working on individual projects, shifting the focus towards risk mitigation and making informed, innovative decisions, facilitated by sharing tools to mobilize private capital, emphasizing the need to leverage the NDB's special budget to bring about change and insurance while continuing to share capital and meet challenges.

He continued that the current Brazilian presidency of the NDB has succeeded in attracting new initiatives in debt, equality, and the environment. However, some concerns should be recognized regarding the cash flows to developing and southern countries, which fell by 48% in 2022, the lowest since World War II, and are expected to decline over the next two years.

He added that the debt service ratio in Sub-Saharan African countries has risen from 21 to 32%, and according to global estimates, it will reach $315 billion in 2024, a very concerning situation due to the debt service condition, explaining that all these indicators are not on track to meet the financing requirements by 2030.

He said that there is a decrease in the period for obtaining financing, which has reached 17 months instead of 25 months, and this period should be reduced to only 10 months from the viewing till the disbursement of funds. There should also be a methodology that focuses on large-scale projects, risk reduction, enhanced guarantees, and private sector involvement through the International Bank's laboratory.

He clarified that experts are conducting evaluations and monitoring progress, hoping that BRICS countries will be able to participate in these financing operations by facilitating procedures, and that we should not neglect increasing capital to enable banks to fulfill their commitments, emphasizing the importance of relying on artificial intelligence.