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BRICS Bank details coming soon- Gordhan
April 18, 2013, 11:36 am


Pravin Gordhan, South Africa’s finance minister said the bank’s headquarters and loan lending issues are still to be decided [AP]

South African finance minister Pravin Gordhan says the structural details about the BRICS-led Development Bank will emerge later this year.

“A number of technical areas have been canvassed, and in the course of the next six months we’ll begin to answer more clearly questions like what capital do you want to start with? How much will be callable?” Gordhan said.

The finance minister was speaking at an ‘Africa Growth Initiative’ discussion in Washington.

The BRICS Development Bank was first proposed by India at the 2012 Summit in response to criticism from developing nations that existing multilateral lenders – such as the World Bank and International Monetary Fund – are too dominated by Western governments.

At the conclusion of the Summit, the leaders announced that the specifics of the scale, location and structure of the Bank will be worked out over the coming months, and some finality is likely to be achieved by September when the five leaders are likely to meet on the sidelines of the next G20 summit in St. Petersburg.

The IMF has announced that it is following with “great interest” the recent announcement by leaders of BRICS to establish a development bank.

The World Bank in March welcomed the BRICS Bank and said it would be an “invaluable partner.”

“The BRICS Bank lends greater diversity to the kind of institutions that can be involved in both marshalling capital on the one hand, packaging it in a particular way that meets our own requirements, and ensuring that we get long-term investment,” Gordhan said in Washington.

China’s finance minister Lou Jiwei has said that the establishment of the bank “is necessary”, adding that “the BRICS nations have great demand for fund to boost infrastructure construction”.

The Indian prime minister Manmohan Singh agrees and said that the “BRICS Bank initiative has opened doors to new possibilities of cooperation.”

The bank’s headquarters and loan lending issues are still to be decided, Gordhan said.

The BRICS Post with inputs from Agencies

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