New Development Bank, BRICS alternative to IMF and World Bank

With the sixth annual summit of BRICS (Brazil, Russia, India, China and South Africa) nations, the agreement to establish New Development Bank has been signed. The bank will have an initial capital of $50 Billion, where each country is contributing equal capital, and also a reserve contingency reserve of $100 Billion, with China providing $41 billion, India, Russia and Brazil providing $18 Billion each, and South Africa providing $5 Billion.

Here are some other details from the agreement: - The NDB’s objective is to mobilize resources for infrastructure and other projects within BRICS and emerging economies - The bank will have an initial authorized capital of $100 billion, with an initial subscribed capital of $50 billion, equally shared by all BRICS members - The first chair of the board of governors will be Russian, while the first chair of the board of directors will be from Brazil - There will also be an NDB Africa Regional Center established in South Africa - Membership will be open to other members of the United Nations

link for the BRICS Agreement (contingency reserve and NDB) - http://brics6.itamaraty.gov.br/agreements

Media Links - 1. http://www.dw.de/emerging-economies-launch-development-bank/a-17779926

2. http://economictimes.indiatimes.com/news/international/business/brics-to-create-development-bank-mini-imf/articleshow/38434321.cms

3. http://qz.com/235367/how-to-start-a-bank-and-let-each-of-the-brics-be-in-charge/

4. http://www.bbc.com/news/business-28317555