BRICS leaders approve formation of BRICS Bank
During the course of their meeting in Brazil on Tuesday, the leaders of the BRICS countries – Brazil, Russia, India, China, and South Africa – gave their approval to the formation of the BRICS Bank.
It was back in 2011-12 that India – during its chairmanship of the BRICS grouping – had floated the idea of the formation of the BRICS Bank. To explore the idea further, a study group was constituted by the BRICS countries in 2012.
At the meeting of the leaders of the BRICS countries in South Africa in March last year, the approval was given to the setting up of an inter-governmental group for working out the modalities.
Finally, during the Tuesday proceedings at the BRICS summit in Brazil, the leaders of the BRICS countries resolved the issues which were unresolved hitherto, and have approved the formation of the BRICS Bank.
The New Development BRICS Bank (NDBB) will have the ability to intermediate the surplus funds from the emerging economies to the developing economies with a deficit of finance for infrastructure investment. The move will speed up economic growth in both emerging and developing economies.
All the five BRICS countries will have equal shareholding in the NDBB. The equal share of the five countries in the new bank will ensure that all the members have an equal say in defining the philosophy, operational rules and procedures, and governance of the NDBB.
Source- The Economic Times
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