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BRICS pay in 1st tranche of $750 mn to BRICS Bank capital
January 14, 2016, 1:25 pm

The signing of joint documents following the BRICS leaders meeting in Ufa, Russia on 9 July 2015 [PPIO]

The signing of joint documents following the BRICS leaders meeting in Ufa, Russia on 9 July 2015 [PPIO]

BRICS members made their first contributions worth a total of $750 million to the capital of the New Development Bank BRICS, an official statement said on Thursday.

According to the report, the tranches to the bank’s capital were paid in accordance with the lender’s agreement signed during the BRICS Summit last year.

The NDB is expected to compete with institutions where the US has considerably more influence—organizations such as the World Bank and the International Monetary Fund.

The contribution to the bank’s capital stock is made through paid up capital, which is directly transferred to NDB, and subscribed capital, which shareholders provide in case it is needed. Paid up capital is the key asset for the development bank, the report said. It is expected to total $10 billion to be paid through 7 tranches. The new lender’s subscribed capital will total $40 billion.

The bank has an initial authorized capital of $100 billion.

It will have a three-tier governance structure — a board of governors, a board of directors, a president and vice presidents.

The BRICS countries are the key suppliers of raw materials for the global economy, Chinese Vice Finance Minister Zhu Guangyao said at the 4th Economic and Financial Forum of BRICS Countries that was held in Beijing on Tuesday.

“Emerging economies, including the BRICS countries, are a new force. Their aggregate gross domestic product exceeds 20 percent of total global GDP. By 2020, these countries will account for about 25 percent of the global economy,” Zhu Guangyao said.

Zhu Guangyao also said that pessimistic forecasts of the BRICS countries’ development were largely based on the overall downward trend in global economic growth. “We are facing new challenges but we also have new opportunities that will require the strengthening of our cooperation and the pooling of our efforts,” the Chinese Vice Finance Minister said.

The long-heralded New Development Bank (NDB) or the BRICS Bank officially commenced business in July with the first meeting of its board of governors in Moscow.

The BRICS Bank will also soon set up a hotline with the new China-led Asian Infrastructure Investment Bank.

 

TBP and Agencies

4 Responses to BRICS pay in 1st tranche of $750 mn to BRICS Bank capital

  1. mohamed reda laghzaoui Reply

    January 16, 2016 at 7:30 am

    only 750 million? yall are supposed to have 50 or 100 billion!!! lets get the bank together for a better world!!! A more positive BRICS-led world!!! Get the money together before the opportunity passes !

  2. Shivam Pieter Lalleman Reply

    January 18, 2016 at 1:38 am

    Friends, I jumped when I heard the news of todays inauguration, the beginning of the end of Rothschild banxters cabal’s FED and Worldbank IMF. But I’m also cautious since we know well the cabal is always way ahead of the game. We know that old jacob runs the city and Evelyn the Basel central bank of all central banks, but what about Walter I belief his name is, I read in an article some years ago that he would prepare China for the transition from the “toiletpaper” dollar as it is now called to a goldbacked debtfree new world currency, so thousands of people arround the world would like to know if we are just following the cabals agenda or taken for another ride. A few months ago old Jacob anounced his retirement so we know the cabal is now dumping the secound ring which include the Martins- Rockafellar families (banxters-military-industrial-complex), among others, who are of course freaking out some of them as we know ecaping to the far corners of the planet, it seems New Zealand is favorite. All this is in the news, but there is still so much we do not know, the dollar broke away from the gold-standard to enable the cabal to rob the US gold reserves, the same they did with the russian reserve under Jeltsin until Viktor Gerashenko stopped them, The US FED is nothing more than an I believe 18 trillion dollar debt so the US can have it for free. Thus the people of the world if you allow me, want to know where we stand with this Russia-China coalition, could anyone shine some light on this?? — Love Shivam —

  3. Raahul Kumar Reply

    January 24, 2016 at 1:35 am

    It is good to see the New Development Bank making progress, but it isn’t until it starts lending that we will see what this Bank is capable of. Hopefully these two institutions can fill that trillion dollar funding gap that exists in infrastructure.

  4. Purshotam sacher Reply

    January 26, 2016 at 1:33 am

    Hi Friends.I live in Canada and india and wonder what’s gonna happen to Canadian dollar value against Indian rupee as a impact of brics bank in near future?

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