BRICS to Create New Development Bank in Brazil

Farewell to the Petrodollar.....

MOSCOW, July 9 (RIA Novosti) - The leaders of the BRICS countries – Brazil, Russia, India, China and South Africa – plan to sign an agreement to create the New Development Bank, with $100 billion in capital, during a summit in Brazil on July 14-16, Russia's Finance Minister Anton Siluanov told journalists.

"There are no questions on the capital, three positions have been agreed upon: authorized stock of $100 billion, dedicated capital [from member-states] of $50 billion, and paid-up capital [which the countries are obliged to deposit within seven years] of $10 billion," Siluanov said, adding that the paid-up capital may be increased to $40 billion upon request.

The proposal for the creation of the bank was first voiced at the BRICS summit it South Africa two years ago, but the participants failed to agree on the capital distribution. The capital is now planned to be equally distributed between member-states.

"The bank is open to taking in new participants among United Nations members, but the agreement is that the BRICS share will not fall below 55 percent," Siluanov said.

All major decisions at the bank are to be made through either a majority or two-thirds vote. The bank is expected to start operations next year and is to finance infrastructure projects in member-states.

The bank's headquarters is to be decided upon at the summit in Brazil, where the leaders are to choose between Shanghai and New Delhi. The BRICS also plan to appoint the bank's chairman, who is to serve for the next five years. Russia has not submitted a candidate, Siluanov said, adding that the position requires a well-known person on the international market.

Credit to RIANovosti