Xinhua recently reported that the Sixth BRICS Summit will be held in Brazil on July 15. It is widely expected that the Summit will finalize the plan to establish the BRICS Development Bank and the BRICS Contingency Reserve Fund. The initial capital investments into the Bank will total US$50 billion. Each member country is expected to supply US$10 billion. The Reserve Fund will have US$100 billion to handle unexpected emergency situations. China is expected to provide US$41 billion to the Reserve. Russia, Brazil, and India will contribute US$18 billion each and South Africa will supply US$5 billion. Brazilian officials indicated that the two new mechanisms are in response to the lack of democracy in the World Bank and the International Monetary Fund (IMF). The BRICS Bank is planning to focus its investments on infrastructure-building in poor countries. The World Bank commented on the news that it welcomes the new BRICS Bank and the effort to fight poverty. While the BRICS member countries together will always hold a minimum of 55 percent of shares, the Bank welcomes other UN members to join.
Source: Xinhua, July 10, 2014
People’s Daily, July 9, 2014