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BRICS agree to capitalize development bank at $100bn

Published time: September 05, 2013 14:19
(RIA Novosti/
Igor Russak)

(RIA Novosti/ Igor Russak)

The BRICS nations have decided to fund their development bank with $100 billion. The reserves are aimed at financing joint development ventures, and are set to rival the dominance of the World Bank and the IMF.

“At the final stage of realization - the initiative to create a BRICS forex reserve pool – the size of its capital has been agreed at $100 billion,” Russian President Vladimir Putin said while opening the G20 Summit in St. Petersburg.

Russia, Brazil and India will contribute $18 billion to the BRICS currency reserve pool, while China $41 billion and South Africa $5 billion, according to a press release issued by the BRICS on Thursday.

Earlier this week Russia’s Finance Minister Sergei Storchak said that there were still a lot of “difficult details” to sort out.

“These are systematic themes, complicated [and] negotiationsare difficult. We must assume the bank will not start functioning as fast as one could imagine. It will take months, maybe a year,” said Storchak.

In June Storchak said the project would be up and running by 2015. The scheme was approved in Durban South Africa at the BRICS summit in 2013.

The bank is designed to help finance infrastructure and development projects in the BRICS countries and will pool foreign currencies to fend off any future financial crisis.

Russian Foreign Minister Sergei Lavrov said the bank will “help avoid the negative impacts that fluctuations in currency markets may have on our economies.”

The creation of the reserves pool may help the BRICS nations in their drive to reform votes and quotas in the International Monetary Fund (IMF).

An IMF quota represents a countries contribution to the fund’s capital as well as its clout in the IMF’s decision making. It can also decide the size of any loan that country receives from the IMF. Currently the US has the highest quota of any country at 17.08%, allowing it to veto any decision as any initiative is only passed if it receives 85% of the vote.

The BRICS countries represent a considerable force in terms of the world’s finances. Trade within the group amounted to 16.8% of global commerce at $6.1 billion. 

“The strength of the BRICS is amplified by the fact that BRICS countries account for 43% of the world’s population, around 18% of its GDP and 40% of its currency reserves, estimated at around a trillion US dollars,” said Jacob Zuma, the South African President, at the Durban summit.

Increased economic muscle among the BRICS has been matched by a louder voice across all areas of global affairs.

The Russian Foreign Ministry Ambassador Vadim Lukov said Thursday that the BRICS countries will have an informal meeting at the G20, “at which they will discuss interaction and coordination of the G20 positions.”

The BRICS are determined to create a full-scale mechanism of coordination on an increasingly broader range of political and economic issues, Lukov added


Comments (25)

 

David Martens 04.07.2014 14:08

I fail to understand why Russia would want to deal with an all Marxist black racist government like the South African government. Wouth Africa has now the worlds worst statistics for Murder, Genocide, Rape, Government Corruption, total alienation and exclusion of whites from the workplace in draconic laws signed by Jacob Zuma.

And especially with a president that sings songs of killing South Africa's farmers (pertaining to white farmers only) and Boers.

All these aspects are headlong with President Vladimir Putin's (visible) policies of removing corruption and atrocities against the people of the world.

 

floyd breker 28.06.2014 02:26

We are likely headed for an ugly showdown between the BRICS and the one world government Nazi fascist West.

 

floyd breker 28.06.2014 02:24

[/quote]

Un fortunately the Rothschilds and their stooges on Wall Street wont like this one bit. They will use their old trick of provoking a war somewhere. They financed the coup d'etat in Kiev, hoping to drag Ukraine into the EU and NATO and use it to break up Russia, so that the banksters could loot Siberia They are now provoking Russia to invade Eastern Ukraine, but Russia is not falling for cheap tricks and simple traps. They are applying patience.[/quote]

The sad part is this patience is costing a lot of anti - Nazi coup fighters (and innocent civilians) their lives. Let's hope these deaths will not be in vain.

View all comments (25)
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