Skip to comments.Russia, China, India Ready to Launch Rival to World Bank
Posted on 07/10/2014 6:34:31 AM PDT by wetphoenix
The long-awaited BRICS development bank is expected to finally be launched next week, Russian finance minister Anton Siluanov confirmed today.
The joint project will see the emerging economic powers of Brazil, Russia, India, China and South Africa establish an alternative to the World Bank, in an attempt to ensure economic stability should the U.S. dollar continue to fluctuate.
The New Development Bank project will see each of the founding countries contribute $2 billion to the banks funds over the next 7 years, with the banks maximum capital set at $100 billion.
Non-BRICS countries will be invited to join as members once the New Development Bank opens for lending in 2016, said Siluanov.
The banks stated aim is to keep emerging economies stable, serving as a counterweight in the case of disruptive capital outflow. The project presents a new step away from economic dependence on the U.S. by the BRICS countries.
The launch of the New Development Bank comes after growing mistrust by BRICS leaders of the World Bank, which they have accused of being too concerned with the Euro-Atlantic economic agenda.
The bank will be launched at a BRICS summit in Fortaleza, Brazil next week, said Siluanov, with all but the decision on the main headquarters already agreed.
The two options currently being considered are Shanghai or New Delhi, reported ITAR TASS. Russia has stated no preference but will aim to retain involvement by dominating at the managerial level.
Siluanov also confirmed that plans for a separate BRICS project, planned as an alternative to the International Monetary Fund. A joint contingency currency pool between the five BRICS countries is on the agenda at Fortaleza, which would see a further $100 billion become available to any member in proportional installments.
"In current conditions of capital volatility, it is important for our
(Excerpt) Read more at newsweek.com ...
I would change this heading a little:
Russia, China, India Ready to Launch Non-Socialist Rival to World Bank
Buh-bye USD . Hello 15 dollar a gallon gas, 10 dollar loaves of bread..