BRICS agree on $50bn IMF rival bank, ‘difficult’ details remain
03 Sep 2013
The ‘big five’ of the developing world, the BRICS nations, will meet on the sidelines of the G20 to further iron out the details of their proposed development bank, which will pool foreign reserves from the five nations to create a fund of up to $100bn.
Leaders from Brazil, Russia, India, China, and South Africa will meet in St. Petersburg to discuss the progress of the bank to rival the dominance of the World Bank and the IMF, and to establish a new joint currency reserve arrangement.
So far the emerging economies have agreed on $50bn in capital, but there are still ‘difficult details’ that could take months to sort out, Russian Russian Deputy Finance Minister Sergei Storchak said.
"These are systemic themes, complicated, [and] negotiations are difficult. We must assume that the bank will not start functioning as fast as one could imagine," Storchak said. "It will take months, maybe a year."
The bank will be set up by 2015 Storchack confidently said in June at the St. Petersburg Economic Forum. The project was approved at the BRICS summit in Durban, South Africa in March 2013.