Group of emerging powers set up $50bn development bank and $100bn contingency fund, seen as rival to World bank and IMF.
The BRICS group of emerging powers have launched a $50bn development bank to be based in the Chinese city of Shanghai, according to a joint declaration.
The bank will have an initial subscribed capital of $50bn followed by an authorised capital of $100bn, equally shared among the BRICS members - Brazil, Russia, China, India and South Africa.
The New Development Bank's first president will be from India while the board's chairman will be Brazilian, according to the declaration released at a summit in Fortaleza, Brazil.
Tuesday’s deal was reached after intense last-minute negotiations to settle a dispute between India and China over the headquarters of the new bank.
Brazilian President Dilma Rousseff said setting up the currency reserve was a priority for the countries to protect themselves from crisis scenarios: "It will be a kind of security net to increase protection for BRICS countries as well as other countries. It's a question of our security."
http://www.aljazeera.com/news/americas/2014/07/brics-sign-deal-create-development-bank-201471519148866209.html
