BRICS Bank to fund needs of emerging nations: PM

 India will guide the BRICS nations’ $50 billion New Development Bank — a rival to the World Bank — to finance “inclusive and responsive” needs of particularly emerging economies, Prime Minister Narendra Modi said on Sunday.

BRICS nations — Brazil, Russia, India, China and South Africa — on Sunday reviewed the progress made in setting up of the New Development Bank, as well as a $100 billion liquidity reserve fund as the emerging economies seek greater voice on the world stage. The meeting took place ahead of the Summit of leaders of the 20 biggest economies of the world (G20) here, in Turkey. The grouping discussed the progress made in setting up the New Development Bank, with an initial capital of $50 billion, to meet financing needs of emerging economies. India has got the first presidency of the China-headquartered bank.

“India attaches the highest importance to BRICS. We are honoured to assume the Chairmanship of BRICS from February 1, 2016, and build on the great work done by other members,” Modi said in his opening remarks at the BRICS meeting here.

“The theme of India’s BRICS Chairmanship will be ‘Building Responsive, Inclusive and Collective Solutions’ which, in short, will be ‘BRICS’. It aptly describes the ethos of our group.”

Modi, Russian President Vladimir Putin, Chinese President Xi Jinping, Brazilian President Dilma Roussef and South African President Jacob Zuma met ahead of the G20 Summit here to review progress made by their five-member grouping, called BRICS. The Bank, which the BRICS countries see as an alternative to the World Bank, is to have its capital expanded to $100 billion within the next couple of years. The bank was agreed upon in a meeting of BRICS in Ufa, Russia in July.

The BRICS $100 billion currency reserve pool has been set up to protect the group countries’ currencies from volatility in global markets.

China is to contribute $41 billion to the fund, while Brazil, India and Russia will chip in $18 billion each. South Africa will contribute $5 billion.

To a better ‘emerging’ world

India to help BRICS Bank in supporting the inclusive needs of emerging economies
India to take over the Chairmanship of BRICS from
February 1, 2016
The BRICS $100 billion currency pool to shield the group countries’ currencies from global volatility