Africa, BRIC, emergency, News, reserve, South Africa, World -

BRIC Countries Create $100B Bank to Compete With IMF, World Bank

Africa, BRIC, emergency, News, reserve, South Africa, World -

BRIC Countries Create $100B Bank to Compete With IMF, World Bank

_76286877_tv023169010 The leaders of the five Brics countries have signed a deal to create a new $100 billion (£58.3 billion) development bank and emergency reserve fund.

The Brics group is made up of Brazil, Russia, India, China and South Africa.

The capital for the bank will be split equally among the five participating countries.

The bank will have a headquarters in Shanghai, China, and its first president will come from India.

Brazil’s President Dilma Rousseff announced the creation of the bank at a Brics summit meeting in Fortaleza, Brazil, on Tuesday.

A new player

At first, the bank will start with $50 billion in initial capital.

The emergency reserve fund – which was announced as a “Contingency Reserve Arrangement” – will also have $100 billion, and will help developing nations avoid “short-term liquidity pressures, promote further Brics cooperation, strengthen the global financial safety net and complement existing international arrangements.”

The creation of the Brics bank will almost surely create competition for both the World Bank and other similar regional funds.

Brics nations have criticized the World Bank and the International Monetary Fund for not giving developing nations enough voting rights.

One of the goals for the bank – whose creation has been discussed for some time – would be to increase the amount of money loaned to developing countries to help with infrastructure projects.

Source bbc.com


Leave a comment

Related Posts

Lebron James ' School Proving Naysayers Wrong with Huge Gains in Test Scores
Lebron James ' School Proving Naysayers Wrong with Huge Gains in Test Scores
Students who attend NBA superstar LeBron James’ I Promise School in Akron, Ohio, have posted “extraordinary” test res...
Read More
Why was Nipsey Hussle Murdered? 5 Reasons Nipsey Hussle was a Threat to White Supremacy and racism.
Why was Nipsey Hussle Murdered? 5 Reasons Nipsey Hussle was a Threat to White Supremacy and racism.
Joining of Multiple Rival Gangs (BountyHuntaz Bloods, Neighborhood 60 Crips, etc.) Exposing the Truth behind the Tria...
Read More
Nipsey Hussle To Do A Documentary On Dr. Sebi
Dr. Sebi was a Honduran herbalist and self-proclaimed healer. Dr. Sebi was famed to cure all disease with herbs and a...
Read More
Beyoncé And Jay-Z Headline the 2018 Global Citizen Festival to Honor Nelson Mandela's Legacy
At a respectable hour—2:47 p.m. EST on Sunday, to be exact—Beyoncé and husband Jay-Z’s philanthropy and benevolence ...
Read More

Tags