The leaders of Brazil, Russia, India, China and South Africa agreed to launch the institutions to finance infrastructure projects and head off future economic crises.
The five emerging nations first unveiled their plans last year. The New Development Bank will mirror the Washington-based World Bank while the reserve is seen as a "mini-IMF".
The development bank will have initial capital of $50 billion that could rise to $100 billion, funded equally by each nation to avoid concerns that one country has more power than the other.
After drawn-out negotiations about the bank's location, BRICS leaders agreed to put its headquarters in Shanghai. The first president will be Indian while the first board chair will from Brazil.
The five emerging nations first unveiled their plans last year. The New Development Bank will mirror the Washington-based World Bank while the reserve is seen as a "mini-IMF".
The development bank will have initial capital of $50 billion that could rise to $100 billion, funded equally by each nation to avoid concerns that one country has more power than the other.
After drawn-out negotiations about the bank's location, BRICS leaders agreed to put its headquarters in Shanghai. The first president will be Indian while the first board chair will from Brazil.
3 comments:
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