Categories: Breaking NewsBusiness

BRICS countries agree to create $100 billion development bank and emergency reserve fund

The BRICS countries have signed a deal to create a new $100 billion development bank and emergency reserve fund.

Brazil, Russia, India, China and South Africa make the BRICS group.

The capital for the bank will be split equally among the five participating countries.

The bank will have a headquarters in Shanghai, China and the first president for the bank will come from India.

Brazil’s president Dilma Rouseff has announced the creation of the bank at this year’s BRICS summit meeting in Fortaleza, Brazil on Tuesday.

The BRICS countries have signed a deal to create a new $100 billion development bank and emergency reserve fund

At first, the bank will start off with $50 billion in initial capital.

The emergency reserve fund – which was announced as a “Contingency Reserve Arrangement” – will also have $100 billion, and will help developing nations avoid “short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements”.

The creation of the BRICS bank will almost surely create competition for both the World Bank and other similar regional funds.

BRICS nations have criticized the World Bank and the International Monetary Fund (IMF) for not giving developing nations enough voting rights.

One of the goals for the BRICS bank – whose creation has been discussed for some time – would be to increase the amount of money loaned to developing countries to help with infrastructure projects.

lWhh4EQvVg0
Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

White House 2024: Voter Fraud Claims Flood Social Media

Misleading allegations, rumours and outright lies about voting and fraud are flooding online spaces in…

1 day ago

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

4 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

4 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago

America PAC: Elon Musk Promises to Award $1M Each Day to Swing States Voters

Elon Musk has said he will give away $1 million a day to a registered…

2 weeks ago