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![Both the Bank and a $100 billion contingency reserve fund for the BRICS nations will be launched during the Brazil Summit on 15-16 July [gov.br]](http://thebricspost.com/wp-content/uploads/2014/06/755x285_fill_brics-3.jpg)
Both the Bank and a $100 billion contingency reserve fund for the BRICS nations will be launched during the Brazil Summit on 15-16 July [gov.br]
All the BRICS nations apart from Brazil had bid to host the $100 billion development Bank. Both the Bank and a $100 billion contingency reserve fund for the BRICS nations will be launched during the Brazil Summit on 15-16 July.
“Thus, the basis for the macroeconomic coordination of the five states will be laid. The new institutions will allow enforcing the global finance system, which is particularly important amid the IMF reform that reached a deadlock,” said Ushakov.
The location of the Bank has already been recorded in the official documents said Ushakov.
The BRICS countries will initially underwrite $50 billion in capital to the BRICS bank, in equal parts of $10 billion each, said a Brazilian Foreign Ministry official in Rio de Janeiro earlier this week. The $50 billion will be eventually built up to $100 billion.
The Bank will have a rotating chair similar to the BRICS Business Council, although the announcement on the first chairman of the Bank will possibly be announced during the Summit next week.
The five founding members of the new Bank will retain controlling interest should any new members be admitted and the BRICS share will never dip below 55 per cent.
Noted columnist and Russia expert Mark Adomanis says the BRICS Bank is likely to suffer significant growing pains but “the simple fact of its creation demonstrates the shockingly rapid pace of change of the past decade”.
“Ten years ago the creation of such a bank would have been greeted with open derision and laughter in Washington, London, Paris, and other Western capitals. They’re certainly not laughing anymore,” writes Adomanis.
TBP
