Brics to launch new Development Bank
By Lidia Kelly
The launch of the bank will be the group's first major achievement after struggling to take coordinated action following an exodus of capital from emerging markets last year, triggered by the scaling back of U.S. monetary stimulus.
Capitalisation of the new bank has been a major sticking point, but Siluanov confirmed that the funding would be divided equally, with an initial total of $10 billion in cash over seven years and $40 billion in guarantees.
The $50 billion will be eventually built up to $100 billion, and the bank will be able to start lending in 2016, he said.
The chairmanship, with a term of five years, will rotate among the members, but the first chairmanship is yet to be decided, Siluanov said.
FRAMEWORK AGREEMENT ON CURRENCY POOL
A senior Brazilian official who participates in the negotiations said the pool could become operational as soon as in 2015.
"It is to be a mechanism that could react swiftly to capital outflow by offering swap operations .. in dollars," Siluanov said.
"Some countries may put in less, but their needs are also greater, proportionally," Siluanov said.