Wednesday, July 1, 2015
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.