The government of Honduras has formally applied to become part of the New Development Bank, known as the BRICS bank, in an official visit of Honduran President Xiomara Castro to Shanghai. Honduras is now another country that has requested entry into the financial organization, alongside Argentina.

Honduras Requests Entry to BRICS Bank

The New Development Bank, also known as the BRICS bank, has received a formal application from the government of Honduras to be part of the financial institution.

The request, delivered personally by Honduran President Xiomara Castro, is part of a state visit by invitation of Chinese President Xi Jinping, directed to complete economic, cultural, and political agreements.

Castro visited BRICS bank president Dilma Rousseff in Shanghai, where the institution reaffirmed its “commitment to promoting sustainable development & international cooperation.”

At a speech during Castro’s reception, Rousseff explained the BRICS bank was open to receiving more members in its development plans and stated Castro’s visit was of “great importance.”

Castro explained that this request seeks to find alternatives to the traditional finance models that “in many cases brought more poverty and misery.” She stated:

We think that there are all the possibilities that we could find mechanisms that will allow us to develop our economy and find permanent allies to provide a different level of quality of life to our people.

During the visit, Honduras also opened its first embassy in China.

New Development Bank Expansion

The New Development Bank, although established in 2014, has started to gain relevance recently with the rise of the BRICS bloc and its proposal of decentralization of global finance. The bank already has the participation of three countries — Bangladesh, Egypt, and the UAE — besides the ones that are part of the BRICS bloc: Brazil, Russia, India, China, and South Africa.

Argentina is another of the countries expecting to be admitted in the coming months. The entrance of the country to the BRICS bank will be supported by Brazil, according to Rousseff, who also told Argentine Economy Minister Sergio Massa that Argentina’s admission would be voted on in August.

Also, according to recent reports, the bank is in talks to accept Saudi Arabia as a member, seeking to diminish its dependence on Russia, which currently holds a 19% stake in the bank.

What do you think about the formal application of Honduras to be part of the BRICS bank and its expansion? Tell us in the comments section below.