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LequteMan
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The five Brics countries- #Brazil, #Russia, #India, #China and #South Africa- have signed a deal to create a new $100bn (£58.3bn) development bank and emergency reserve fund, Brazil's President, Dilma Rousseff, announced at a Brics summit meeting in Fortaleza, Brazil yesterday.
The capital for the bank will be split equally among the five participating countries and it will have a headquarters in Shanghai, China and the first president for the bank will come from India.
According to The BBC, the bank will at first start off with $50bn in initial capital.
The emergency reserve fund - which was announced as a "Contingency Reserve Arrangement" - will also have $100bn, and will help developing nations avoid "short-term liquidity pressures, promote further Brics cooperation, strengthen the global financial safety net and complement existing international arrangements".
The creation of the Brics bank will almost surely create competition for both the World Bank and other similar regional funds, #BBC says.
Brics nations have criticised the World Bank and the International Monetary Fund for not giving developing nations enough voting rights.
One of the goals for the bank - whose creation has been discussed for some time - would be to increase the amount of money loaned to developing countries to help with infrastructure projects.
View attachment 26186
Pic credit: Reuters
The capital for the bank will be split equally among the five participating countries and it will have a headquarters in Shanghai, China and the first president for the bank will come from India.
According to The BBC, the bank will at first start off with $50bn in initial capital.
The emergency reserve fund - which was announced as a "Contingency Reserve Arrangement" - will also have $100bn, and will help developing nations avoid "short-term liquidity pressures, promote further Brics cooperation, strengthen the global financial safety net and complement existing international arrangements".
The creation of the Brics bank will almost surely create competition for both the World Bank and other similar regional funds, #BBC says.
Brics nations have criticised the World Bank and the International Monetary Fund for not giving developing nations enough voting rights.
One of the goals for the bank - whose creation has been discussed for some time - would be to increase the amount of money loaned to developing countries to help with infrastructure projects.
View attachment 26186
Pic credit: Reuters