BackBrics nations to sign deal creating development bank
The group will contribute $2 billion to the capital of the entity, named 'New Development Bank'
Premium
Moscow: The Brics group of emerging giants are expected to sign a deal next week to open their own development bank by 2016, Russia’s finance minister said on Wednesday.
The entity would be called “New Development Bank", with each Brics member (Brazil, Russia, India, China and South Africa) to contribute $2 billion (over ₹ 11,900 crore) to its capital, finance minister Anton Siluanov said, according to Russian news agencies.
The bank would have a maximum capital of $100 billion and be headquartered in Shanghai or New Delhi.
The five Brics nations unveiled in 2013 their plans to create the bank, which aims to rival Western-dominated institutions like the World Bank.
“During the summit, we should decide on the creation of the bank and a currency fund," said Siluanov.
He added that member states would have to make their contributions to the bank’s capital within seven years but that the bank should effectively be created by 2016.
Membership in the bank, which would specialize in financing infrastructure works, would be open to other UN states but the five Brics nations would hold a controlling share of above 55%.
Siluanov said the Brics would also sign a framework deal for a fund during the summit.
The fund—dubbed a “mini-IMF (International Monetary Fund"—would amount to $100 billion, with $41 billion from China, $18 billion each from India, Brazil and Russia and $5 billion from South Africa.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
