The Brics group of emerging powers launched a $50bn development bank on Tuesday to be based in Shanghai and a $100bn crisis contingency fund, according to a joint declaration.
The New Development Bank’s first president will be from India, while the board’s chair will be Brazilian, according to the declaration released at a summit in Fortaleza, Brazil.
The bank will have an initial subscribed capital of $50bn followed by an authorised capital of $100bn, equally shared among South Africa, Brazil, Russia, China and India.
The Contingency Reserve Arrangement will have an initial size of $100bn and will help countries avoid “short-term liquidity pressures, promote further Brics co-operation, strengthen the global financial safety net and complement existing international arrangements”, the statement said.
The bank and fund are seen as counterweights to the Western-dominated World Bank and International Monetary Fund, which Brics nations say need more reform to give emerging nations more voting rights.
South Africa is a member of the Brics group.
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