China ratifies the creation of BRICS bank — RT Business

The Chinese Parliament has ratified the creation of the BRICS Development Bank. The New Development Bank was conceived as an alternative to Western financial institutions such as the World Bank.

The new bank will provide money for infrastructure and development projects in BRICS countries, that is Brazil, Russia, India, China and South Africa. Each nation will have an equal say in the bank’s management, regardless of GDP size

Each BRICS member is expected to contribute an equal share in establishing a startup capital of $50 billion, with a goal of reaching $100 billion in capitalization. The BRICS bank will be headquartered in Shanghai, with India presiding as president during the first year, and Russia serving as the chairman of the representatives.

China has pledged to contribute a total of $41 billion to the NDB bank, which will give it the largest voting rights, at 39.5 percent, Reuters reports.

The agreement has already been ratified in India and Russia.

In China, the creation of the NDB bank, also known as the BRICS Bank, has been approved by the Standing Committee of the National People’s Congress at its meeting that runs until July 1.

It has been agreed that an African regional center of the NDB bank will be established in South Africa

via China ratifies the creation of BRICS bank — RT Business.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s