BRICS Development Bank opened in Shanghai. – RBC

New BRICS Development Bank

Photo: AFP

The new Development Bank (KfW, New Development Bank) opened a year after the BRICS Summit in Brazil, the results of which were announced the establishment of this institution.

« Our goal is not to challenge the existing system, but in its own way to develop it and complement “, – said at the opening ceremony of the President of the CBB Kundapur Vaman Kamath (quoted by Reuters).

BRICS countries are considering new development bank as an alternative to international financial institutions such as the IMF and the World Bank. The Bank will engage in the financing of infrastructure and development projects in the countries of the organization.

The agreement on the establishment of NBR representatives of the BRICS countries signed in July 2014 at the summit in the Brazilian city of Fortaleza. Russia’s share in the authorized capital of the bank is $ 2 billion. The initial authorized capital of the bank will amount to $ 100 billion.

In early July, the Minister of Economic Development of Russia Alexei Ulyukayev said that the NBI will begin to finance investment projects in the I quarter of 2016. “We will develop by [within BRICS] structures to fill the Development Bank investment projects. Since the I quarter of 2016, these projects will be funded. Russia has proposed a portfolio of such projects, “- said Ulyukayev (quoted by TASS).

China, the world’s second largest economy, is also involved in the creation of yet another multilateral credit organizations – the Asian Bank of infrastructure investments (ABII), which It will be based in Beijing. China will become the largest shareholder ABII. Under an agreement signed in late June by 50 countries-founders of the bank, China will have 30% ABII.

As noted by Reuters, the ceremony, held in Shanghai, which will house the headquarters of the NSC has been relatively low-key in comparison with The signing ceremony for the establishment ABII, which took place in Beijing in June.

In addition, on the eve of the BRICS Summit 2015, which took place in Russia, the central banks of the organization finally agreed on the terms of operation of conventional pool of foreign exchange reserves. The purpose of this pool – granting each other of dollars in the event of liquidity problems. China reserve in case of troubles in countries participating in the union $ 41 billion, Brazil, India and Russia – at $ 18 billion, South Africa – another $ 5 billion. In total, its volume – $ 100 billion. This money is not brought to the pool and the central banks only undertake to provide them in case of need.