The BRICS
group of emerging powers launched a $50 billion development bank Tuesday to be
based in Shanghai and a $100 billion crisis contingency fund, according to a
joint declaration.
The New
Development Bank's first president will be from India while the board's
chairman will be Brazilian, according to the declaration released at a summit
in Fortaleza, Brazil.
The bank
will have an initial subscribed capital of $50 billion followed by an
authorized capital of $100 billion, equally shared among Brazil, Russia, China,
India and South Africa.
The
Contingency Reserve Arrangement will have an initial size of $100 billion and
will help countries avoid "short-term liquidity pressures, promote further
BRICS cooperation, strengthen the global financial safety net and complement
existing international arrangements."
The bank
and fund are seen as counterweights to the Western-dominated World Bank and
International Monetary Fund, which BRICS nations say need more reform to give
emerging nations more voting rights.
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