Brazil's deputies approve BRICS bank
The Chamber of Deputies approved Thursday (May 21) an agreement that creates a development bank signed by the BRICS bloc (Brazil, Russia, India, China, and South Africa). 
The Chamber of Deputies approved Thursday (May 21) an agreement that creates a development bank signed by the BRICS bloc (Brazil, Russia, India, China, and South Africa). The BRICS bank will fund projects in sustainable development and public and private infrastructure in the member countries and other emerging economies. The deputies also ratified the creation of a bailout fund to be used by BRICS members in times of crisis.
The two proposals approved by the Chamber of Deputies will now be submitted to the Senate for consideration. The agreements were signed in July 2014 during the BRICS Summit in Fortaleza, Brazil. The new fund, called Contingent Reserve Arrangement, will be formed with reserves of $100 billion, provided as follows: China ($41 billion), Brazil, India and Russia ($18 billion each) and South Africa ($5 billion).
The bank, called the New Development Bank (NBD), will operate on capital of $100 billion, an amount that can be revised every five years by the Board of Governors, the highest management level of NBD, made up by ministers of the founding countries.
The bank will be headquartered in Shanghai (China) and have offices in other bloc countries. The subscribed start-up capital will be $50 billion, with each BRICS country providing $10 billion. The first president will be appointed by India, whereas Russia will be the first to chair the Board of Governors, and Brazil, the Board of Directors.
Any UN member country can join the NBD. The voting interest of each member will be in proportion to their respective subscribed capital. The BRICS, however, will have a combined voting interest of at least 55% and no other individual country will have greater voting interest than that held by any BRICS member country, according to the agreement.
According to the International Affairs Secretary of Brazil's Ministry of Planning, Budget, and Management, Claudio Puty, the NBD will provide bloc countries with a new funding source for projects in such strategic areas as infrastructure. He went on to say that the new bank “becomes even more relevant in a time Brazil is about to launch an infrastructure investment plan.” NBD resources can also be used to complement private funding of projects, the secretary pointed out.
Translated by Mayra Borges
Fonte: Brazil's deputies approve BRICS bank
