Published time: February 20, 2015 14:12
Edited time: February 20, 2015 14:55
The
Russian State Duma has ratified the $100 billion BRICS bank that’ll
serve as a pool of money for infrastructure projects in Russia, Brazil,
India, China and South Africa, and challenge the dominance of the
Western-led World Bank and the IMF.
The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.
Russia has agreed to provide $2 billion dollars from the federal budget for the bank over the next seven years.
It will have three-tiers of corporate governance, with a Board of Governors, Board of Directors and a President.
The
bank’s board of directors will hold its first meeting in Ufa in Russia
in April. Russian Finance Minister Anton Siluanov is likely to become
the bank’s first Chairman of the Board of Governors, according to Deputy
Finance Minister Sergei Storchak talking on the Russia 24 TV channel.
The
decision to establish the BRICS bank, along with a $100 billion reserve
currency pool, was made in July 2014. Each of the five member countries
is expected to allocate an equal share of the $50 billion startup
capital that will be expanded to $100 billion.
The
bank will be headquartered in Shanghai, India will serve as the first
five-year rotating president, and the first Chairman of the Board of
Directors will come from Brazil.
