Brazil Defaults on BRICS Bank Agreement After Congress Blocks Payment

The New Development Bank NBD was established by the group of emerging economies known as the BRICS. Brazil in 2015 agreed to pay its contribution to capitalize the bank in seven installments.

RIO DE JANEIRO, BRAZIL - Brazil's Economy Ministry onTuesday said it had defaulted on its penultimate capital installment to the New Development Bank (NDB) because the payment had not been authorized by Congress.

The NBD was established by Brazil, Russia, India, China and South Africa, a group of emerging economies known as the BRICS. Brazil in 2015 agreed to pay its contribution to capitalize the bank in seven installments.

On Tuesday, the Ministry of Economy said it forwarded requests for budget allocations to Congress multiple times to make the payment. Though lawmakers approved the funding, they have decided to allocate . . .

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