Difference between revisions of "New Development Bank"
(Greece invited to become the sixth member of BRICS) |
m (Text replacement - "|wikipedia=http://en.wikipedia.org" to "|wikipedia=https://en.wikipedia.org") |
||
Line 1: | Line 1: | ||
{{group | {{group | ||
− | |wikipedia= | + | |wikipedia=https://en.wikipedia.org/wiki/New_Development_Bank |
|type=international, financial | |type=international, financial | ||
|headquarters=Shanghai | |headquarters=Shanghai |
Revision as of 05:47, 5 July 2015
New Development Bank | |
---|---|
Headquarters | Shanghai |
Type | • international • financial |
The BRICS Development Bank[1] is a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa) as an alternative to the existing World Bank and International Monetary Fund.[2] The Bank is setup to foster greater financial and development cooperation among the five emerging markets. It is headquartered in Shanghai, China[3] and the first Chief Executive will come from India.[3]
In May 2015, it was reported that Greece had been invited to become the sixth member of BRICS:
- "Greek Prime Minister Alexis Tsipras said Greece is interested in the offer, and promised to thoroughly examine it. He will have a chance to discuss the invitation with the other BRICS leaders during the 2015 International Economic Forum in St Petersburg,” the report read.[4]
Contents
History
The BRICS Development Bank was agreed to by BRICS leaders at the 5th BRICS summit held in Durban, South Africa on 27 March 2013.[2]
On 15 July 2014, the first day of the 6th BRICS summit held in Fortaleza, Brazil, the group of emerging economies signed the long-anticipated document to create the $100 billion BRICS Development Bank and a reserve currency pool worth over another $100 billion.[5] Both will counter the influence of Western-based lending institutions and the dollar. Documents on cooperation between BRICS export credit agencies and an agreement of cooperation on innovation were also signed.[6]
Shanghai was selected as the headquarters after competition from New Delhi and Johannesburg.
The first president of the bank is Kundapur Vaman Kamath, the former Non-Executive Chairman of ICIC Bank, India’s second largest bank.[7] [8] The inaugural Chairman of the Board of directors will come from Brazil [9] and the inaugural chairman of the Board of Governors will be Russian.
Structure and Objectives
Development Capital
The bank's primary focus of lending will be infrastructure projects [10][11] with authorized lending of up to $34 billion annually.[12] South Africa will be the African Headquarters of the Bank named the, "New Development Bank Africa Regional Centre".[13] The bank will have starting capital of $50 billion, with capital increased to $100 billion over time.[14] Brazil, Russia, India, China and South Africa will initially contribute $10 billion each to bring the total to $50 billion.[15][16] Each member cannot increase its share of capital without all other 4 members agreeing. This was a primary requirement of India.[17][18] The bank will allow new members to join but the BRICS capital share cannot fall below 55%.[19]
Contingent Reserve Arrangement (CRA)
The objective of this reserve is to provide protection against global liquidity pressures.[20][21][22] This includes currency issues where members' national currencies are being adversely affected by global financial pressures.[23][24][25]
The Bank would also provide assistance to other countries suffering from the economic volatility in the wake of the United States' exit from its expansionary monetary policy.[26]
This fund will consist of $10 billion of "paid-in capital" ($2 billion from each member to be provided over seven years) and an additional $40 billion to be "paid upon request".[27] Out of the total initial capital of $100 billion, China will contribute $41 billion, Brazil, Russia and India would give $18 billion each, and South Africa would contribute $5 billion.[28] It is scheduled to start lending in 2016 and be open to membership by other countries, but the capital share of the BRICS cannot drop below 55 percent.[29]
Notes and references
- ↑ "BRICS Bank to be headquartered in Shanghai, India to hold presidency". Indiasnaps.com. 16 July 2014
- ↑ Jump up to: a b Powell, Anita. "BRICS Leaders Optimistic About New Development Bank". Voice of America. Retrieved 27 March 2013.Page Module:Citation/CS1/styles.css must have content model "Sanitized CSS" for TemplateStyles (current model is "Scribunto").
- ↑ Jump up to: a b Lewis, Jeffrey; Trevisani, Paulo. "Brics Agree to Base Development Bank in Shanghai". The Wall Street Journal. Retrieved 16 July 2014.Page Module:Citation/CS1/styles.css must have content model "Sanitized CSS" for TemplateStyles (current model is "Scribunto").
- ↑ "Russia Opens Door To Greece As Sixth Member Of New BRICS World Bank"
- ↑ "Brics nations to create $100bn development bank". BBC.com. 15 July 2014
- ↑ "BRICS establish $100bn bank and currency reserves to cut out Western dominance". RT.com. 15 July 2014
- ↑ http://timesofindia.indiatimes.com/business/international-business/BRICS-Development-Bank-launched-first-president-to-be-from-India/articleshow/38440605.cms
- ↑ "India Gets First Presidency Of The BRICS Bk". Bloomberg TV India.Page Module:Citation/CS1/styles.css must have content model "Sanitized CSS" for TemplateStyles (current model is "Scribunto").
- ↑ "Brics Agree to Base Development Bank in Shanghai Bank to Finance Infrastructure Projects in Emerging-Market Countries". 15 July 2014.Page Module:Citation/CS1/styles.css must have content model "Sanitized CSS" for TemplateStyles (current model is "Scribunto").
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑
{{URL|example.com|optional display text}}
- ↑ "BRICS bank to benefit developing countries: Brazilian president". IANS. news.biharprabha.com. Retrieved 15 July 2014.Page Module:Citation/CS1/styles.css must have content model "Sanitized CSS" for TemplateStyles (current model is "Scribunto").
- ↑
{{URL|example.com|optional display text}}
- ↑ "BRICS Development bank top on Agenda of 6th BRICS Summit". IANS. news.biharprabha.com. Retrieved 15 July 2014.Page Module:Citation/CS1/styles.css must have content model "Sanitized CSS" for TemplateStyles (current model is "Scribunto").
- ↑
{{URL|example.com|optional display text}}
External links
- BRICS announce $200B challenge to world financial order - Al Jazeera America
- BRICS launch new bank and monetary fund - Deutsche Welle Akademie
- The Brics development bank can release Africa from World Bank tyranny
- Listen to the sound of the Global South
Wikipedia is not affiliated with Wikispooks. Original page source here