Aarush
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MOSCOW--The creation of a development bank of five nations--Brazil, Russia, India, China and South Africa--may take around five years, Russia's Deputy Finance Minister Sergei Storchak said Tuesday.
BRICS finance and foreign ministries have already held four meetings on the creation of the bank but haven't agreed yet on the amount of funds each state will contribute to the bank's capital, Mr. Storchak said, speaking to Russia's upper house of parliament.
BRICS decided in 2013 to create a development bank and a foreign-exchange rescue fund.
Russia has proposed that each of the five countries contribute 20% of the development bank's capital of $100 billion, Mr. Storchak said. Other parties have expressed a view that the amount they contribute should depend on the actual size of each economy.
There has also been no final agreement on the BRICS bank location.
When agreement is reached, it will take around two years to complete bureaucratic procedures and solve issues, and another three years to gather funds to build the bank's capital.
"In the first two years we can save national budgets. Plus we bet on the pace of economic growth improving so budgets will be better replenished and we will get a more favorable pattern for countries to be really engaged in the banks' operation," Mr. Storchak said.
BRICS representatives are also considering creating a pool of reserve currencies and setting up a mutual insurance fund.
BRICS Bank Creation May Take Five Years -Russia Deputy Fin Min - WSJ.com
BRICS finance and foreign ministries have already held four meetings on the creation of the bank but haven't agreed yet on the amount of funds each state will contribute to the bank's capital, Mr. Storchak said, speaking to Russia's upper house of parliament.
BRICS decided in 2013 to create a development bank and a foreign-exchange rescue fund.
Russia has proposed that each of the five countries contribute 20% of the development bank's capital of $100 billion, Mr. Storchak said. Other parties have expressed a view that the amount they contribute should depend on the actual size of each economy.
There has also been no final agreement on the BRICS bank location.
When agreement is reached, it will take around two years to complete bureaucratic procedures and solve issues, and another three years to gather funds to build the bank's capital.
"In the first two years we can save national budgets. Plus we bet on the pace of economic growth improving so budgets will be better replenished and we will get a more favorable pattern for countries to be really engaged in the banks' operation," Mr. Storchak said.
BRICS representatives are also considering creating a pool of reserve currencies and setting up a mutual insurance fund.
BRICS Bank Creation May Take Five Years -Russia Deputy Fin Min - WSJ.com