Difference between revisions of "New Development Bank"

From Wikispooks
Jump to navigation Jump to search
(hq)
(Greece invited to become the sixth member of BRICS)
Line 6: Line 6:
 
}}
 
}}
 
The '''BRICS Development Bank'''<ref>[http://indiasnaps.com/brics-bank-to-be-headquartered-in-shanghai-india-to-hold-presidency/ "BRICS Bank to be headquartered in Shanghai, India to hold presidency"]. Indiasnaps.com. 16 July 2014</ref> 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.<ref name = "VOA">{{cite web |url=http://www.voanews.com/content/brics-summit-leaders-optimistic-about-new-development-bank/1629583.html |title=BRICS Leaders Optimistic About New Development Bank |last1=Powell |first1= Anita |last2= |first2= |date= |work= |publisher= Voice of America |accessdate=27 March 2013}}</ref> The Bank is setup to foster greater financial and development cooperation among the five emerging markets. It is headquartered in Shanghai, China<ref name = "BRICS Bank">{{cite web |url=http://online.wsj.com/articles/brics-agree-to-base-development-bank-in-shanghai-1405453660 |title=Brics Agree to Base Development Bank in Shanghai |last1=Lewis |first1= Jeffrey |last2=Trevisani |first2=Paulo |date= |work= |publisher= The Wall Street Journal |accessdate=16 July 2014}}</ref> and the first Chief Executive will come from India.<ref name="BRICS Bank"/>
 
The '''BRICS Development Bank'''<ref>[http://indiasnaps.com/brics-bank-to-be-headquartered-in-shanghai-india-to-hold-presidency/ "BRICS Bank to be headquartered in Shanghai, India to hold presidency"]. Indiasnaps.com. 16 July 2014</ref> 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.<ref name = "VOA">{{cite web |url=http://www.voanews.com/content/brics-summit-leaders-optimistic-about-new-development-bank/1629583.html |title=BRICS Leaders Optimistic About New Development Bank |last1=Powell |first1= Anita |last2= |first2= |date= |work= |publisher= Voice of America |accessdate=27 March 2013}}</ref> The Bank is setup to foster greater financial and development cooperation among the five emerging markets. It is headquartered in Shanghai, China<ref name = "BRICS Bank">{{cite web |url=http://online.wsj.com/articles/brics-agree-to-base-development-bank-in-shanghai-1405453660 |title=Brics Agree to Base Development Bank in Shanghai |last1=Lewis |first1= Jeffrey |last2=Trevisani |first2=Paulo |date= |work= |publisher= The Wall Street Journal |accessdate=16 July 2014}}</ref> and the first Chief Executive will come from India.<ref name="BRICS Bank"/>
 +
 +
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.<ref>[http://politicalvelcraft.org/2015/05/14/russia-opens-door-to-greece-as-sixth-member-of-new-brics-world-bank-russian-oil-makes-athens-europes-energy-hub/ "Russia Opens Door To Greece As Sixth Member Of New BRICS World Bank"]</ref>
  
 
==History ==
 
==History ==
Line 14: Line 17:
 
Shanghai was selected as the headquarters after competition from New Delhi and Johannesburg.
 
Shanghai was selected as the headquarters after competition from New Delhi and Johannesburg.
  
−
The first president will be from India,<ref>http://timesofindia.indiatimes.com/business/international-business/BRICS-Development-Bank-launched-first-president-to-be-from-India/articleshow/38440605.cms</ref> <ref>{{cite web |title=India Gets First Presidency Of The BRICS Bk|url=http://www.btvin.com/videos/watch/8003/india-gets-first-presidency-of-the-brics-bk|publisher=Bloomberg TV India}}</ref> the inaugural Chairman of the Board of directors will come from Brazil <ref name=":0">{{Cite web|url = http://online.wsj.com/articles/brics-agree-to-base-development-bank-in-shanghai-1405453660|title = Brics Agree to Base Development Bank in Shanghai Bank to Finance Infrastructure Projects in Emerging-Market Countries|date = 15 July 2014|accessdate = |website = |publisher = |last = |first = Jeffrey T. Lewis andPaulo Trevisani}}</ref> and the inaugural chairman of the Board of Governors will be Russian.<ref name=":0" />
+
The first president of the bank is Kundapur Vaman Kamath, the former Non-Executive Chairman of ICIC Bank, India’s second largest bank.<ref>http://timesofindia.indiatimes.com/business/international-business/BRICS-Development-Bank-launched-first-president-to-be-from-India/articleshow/38440605.cms</ref> <ref>{{cite web |title=India Gets First Presidency Of The BRICS Bk|url=http://www.btvin.com/videos/watch/8003/india-gets-first-presidency-of-the-brics-bk|publisher=Bloomberg TV India}}</ref> The inaugural Chairman of the Board of directors will come from Brazil <ref>{{Cite web|url = http://online.wsj.com/articles/brics-agree-to-base-development-bank-in-shanghai-1405453660|title = Brics Agree to Base Development Bank in Shanghai Bank to Finance Infrastructure Projects in Emerging-Market Countries|date = 15 July 2014}}</ref> and the inaugural chairman of the Board of Governors will be Russian.
  
 
==Structure and Objectives==
 
==Structure and Objectives==
  
 
===Development Capital===
 
===Development Capital===
−
The bank's primary focus of lending will be infrastructure projects <ref>{{cite news|url=http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/07/17/what-the-new-bank-of-brics-is-all-about/|title=What the new bank of BRICS is all about|date= 17 July 2014|work= |publisher=The Washington Post |accessdate=20 July 2014}}</ref><ref>{{cite news|url=http://www.huffingtonpost.com/parag-khanna/new-brics-bank_b_5600027.html|title=New BRICS Bank a Building Block of Alternative World Order|date= 18 July 2014|work= |publisher= The Huffington Post |accessdate=20 July 2014}}</ref> with authorized lending of up to $34 billion annually.<ref>{{cite news|url=http://www.huffingtonpost.com/parag-khanna/new-brics-bank_b_5600027.html|title=New BRICS Bank a Building Block of Alternative World Order|date= 18 July 2014|work= |publisher= The Huffington Post |accessdate=20 July 2014}}</ref> South Africa will be the African Headquarters of the Bank named the, "New Development Bank Africa Regional Centre".<ref>{{cite news|url=http://in.rbth.com/world/2014/07/16/brics_countries_launch_100_billion_developmental_bank_currency_pool_36733.html|title=BRICS countries launch $100 billion developmental bank, currency pool|date= 16 July 2014|publisher= Russia & India Report|accessdate=20 July 2014}}</ref> The bank will have starting capital of $50 billion, with capital increased to $100 billion over time.<ref>{{cite news|url=http://in.rbth.com/economics/2014/07/10/brics_bank_ready_for_launch_-_russian_finance_minister_36599.html|title=BRICS Bank ready for launch - Russian Finance Minister|date= 10 July 2014|work= |publisher= Russia & India Report|accessdate=20 July 2014}}</ref> Brazil, Russia, India, China and South Africa will initially contribute $10 billion each to bring the total to $50 billion.<ref>{{cite news|url=http://in.rbth.com/economics/2014/07/10/brics_bank_ready_for_launch_-_russian_finance_minister_36599.html|title=BRICS Bank ready for launch - Russian Finance Minister|date= 10 July 2014|publisher= Russia & India Report|accessdate=20 July 2014}}</ref><ref>{{cite news|url=http://in.rbth.com/world/2014/07/16/brics_countries_launch_100_billion_developmental_bank_currency_pool_36733.html|title=BRICS countries launch $100 billion developmental bank, currency pool|date= 16 July 2014|publisher= Russia & India Report|accessdate=20 July 2014}}</ref> Each member cannot increase its share of capital without all other 4 members agreeing. This was a primary requirement of India.<ref>{{cite news|url=http://www.bbc.co.uk/news/world-asia-india-28322815|title=Indian media: Brics bank 'a step in right direction'|date= 16 July 2014|work= |publisher=BBC|accessdate=20 July 14}}</ref><ref>{{cite news|url=http://indiatoday.intoday.in/story/modi-victory-brics-summit-clears-a-new-development-bank/1/372582.html|title=Victory for Modi, India as BRICS summit clears setting up of a new development bank|date= 16 July 2014|publisher=India Today|accessdate=20 July 2014}}</ref> The bank will allow new members to join but the BRICS capital share cannot fall below 55%.<ref>{{cite news|url=http://in.rbth.com/economics/2014/07/10/brics_bank_ready_for_launch_-_russian_finance_minister_36599.html|title=BRICS Bank ready for launch - Russian Finance Minister|date= 10 July 2014|publisher= Russia & India Report|accessdate=20 July 2014}}</ref>
+
The bank's primary focus of lending will be infrastructure projects <ref>{{cite news|url=http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/07/17/what-the-new-bank-of-brics-is-all-about/|title=What the new bank of BRICS is all about|date= 17 July 2014|work= |publisher=The Washington Post |accessdate=20 July 2014}}</ref><ref>{{cite news|url=http://www.huffingtonpost.com/parag-khanna/new-brics-bank_b_5600027.html|title=New BRICS Bank a Building Block of Alternative World Order|date= 18 July 2014|work= |publisher= The Huffington Post |accessdate=20 July 2014}}</ref> with authorized lending of up to $34 billion annually.<ref>{{cite news|url=http://www.huffingtonpost.com/parag-khanna/new-brics-bank_b_5600027.html|title=New BRICS Bank a Building Block of Alternative World Order|date= 18 July 2014|work= |publisher= The Huffington Post |accessdate=20 July 2014}}</ref> South Africa will be the African Headquarters of the Bank named the, "New Development Bank Africa Regional Centre".<ref>{{cite news|url=http://in.rbth.com/world/2014/07/16/brics_countries_launch_100_billion_developmental_bank_currency_pool_36733.html|title=BRICS countries launch $100 billion developmental bank, currency pool|date= 16 July 2014|publisher= Russia & India Report|accessdate=20 July 2014}}</ref> The bank will have starting capital of $50 billion, with capital increased to $100 billion over time.<ref>{{cite news|url=http://in.rbth.com/economics/2014/07/10/brics_bank_ready_for_launch_-_russian_finance_minister_36599.html|title=BRICS Bank ready for launch - Russian Finance Minister|date= 10 July 2014|work= |publisher= Russia & India Report|accessdate=20 July 2014}}</ref> Brazil, Russia, India, China and South Africa will initially contribute $10 billion each to bring the total to $50 billion.<ref>{{cite news|url=http://in.rbth.com/economics/2014/07/10/brics_bank_ready_for_launch_-_russian_finance_minister_36599.html|title=BRICS Bank ready for launch - Russian Finance Minister|date= 10 July 2014|publisher= Russia & India Report|accessdate=20 July 2014}}</ref><ref>{{cite news|url=http://in.rbth.com/world/2014/07/16/brics_countries_launch_100_billion_developmental_bank_currency_pool_36733.html|title=BRICS countries launch $100 billion developmental bank, currency pool|date= 16 July 2014|publisher= Russia & India Report|accessdate=20 July 2014}}</ref> Each member cannot increase its share of capital without all other 4 members agreeing. This was a primary requirement of India.<ref>{{cite news|url=http://www.bbc.co.uk/news/world-asia-india-28322815|title=Indian media: Brics bank 'a step in right direction'|date= 16 July 2014}}</ref><ref>{{cite news|url=http://indiatoday.intoday.in/story/modi-victory-brics-summit-clears-a-new-development-bank/1/372582.html|title=Victory for Modi, India as BRICS summit clears setting up of a new development bank|date= 16 July 2014|publisher=India Today|accessdate=20 July 2014}}</ref> The bank will allow new members to join but the BRICS capital share cannot fall below 55%.<ref>{{cite news|url=http://in.rbth.com/economics/2014/07/10/brics_bank_ready_for_launch_-_russian_finance_minister_36599.html|title=BRICS Bank ready for launch - Russian Finance Minister|date= 10 July 2014|publisher= Russia & India Report|accessdate=20 July 2014}}</ref>
  
 
===Contingent Reserve Arrangement (CRA)===
 
===Contingent Reserve Arrangement (CRA)===

Revision as of 17:30, 1 July 2015

Group.png New Development Bank  Rdf-entity.pngRdf-icon.png
BRICS.svg
HeadquartersShanghai
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]

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

  1. ↑ "BRICS Bank to be headquartered in Shanghai, India to hold presidency". Indiasnaps.com. 16 July 2014
  2. ↑ 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").
  3. ↑ 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").
  4. ↑ "Russia Opens Door To Greece As Sixth Member Of New BRICS World Bank"
  5. ↑ "Brics nations to create $100bn development bank". BBC.com. 15 July 2014
  6. ↑ "BRICS establish $100bn bank and currency reserves to cut out Western dominance". RT.com. 15 July 2014
  7. ↑ http://timesofindia.indiatimes.com/business/international-business/BRICS-Development-Bank-launched-first-president-to-be-from-India/articleshow/38440605.cms
  8. ↑ "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").
  9. ↑ "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").
  10. ↑ {{URL|example.com|optional display text}}
  11. ↑ {{URL|example.com|optional display text}}
  12. ↑ {{URL|example.com|optional display text}}
  13. ↑ {{URL|example.com|optional display text}}
  14. ↑ {{URL|example.com|optional display text}}
  15. ↑ {{URL|example.com|optional display text}}
  16. ↑ {{URL|example.com|optional display text}}
  17. ↑ {{URL|example.com|optional display text}}
  18. ↑ {{URL|example.com|optional display text}}
  19. ↑ {{URL|example.com|optional display text}}
  20. ↑ {{URL|example.com|optional display text}}
  21. ↑ {{URL|example.com|optional display text}}
  22. ↑ {{URL|example.com|optional display text}}
  23. ↑ {{URL|example.com|optional display text}}
  24. ↑ {{URL|example.com|optional display text}}
  25. ↑ {{URL|example.com|optional display text}}
  26. ↑ "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").
  27. ↑ {{URL|example.com|optional display text}}
  28. ↑ "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").
  29. ↑ {{URL|example.com|optional display text}}

External links


Wikipedia.png This page imported content from Wikipedia on 22 July 2014.
Wikipedia is not affiliated with Wikispooks.   Original page source here
Retrieved from "https://wikispooks.com/w/index.php?title=New_Development_Bank&oldid=63404"