BRICS to discuss the creation of new development bank

President of Brazil Dilma Rousseff, Prime Minister of India Manmohan Singh,  President of Russia Vladimir Putin, President of China Xi Jinping and President of South Africa Jacob Zuma. Photo: RIA Novosti

President of Brazil Dilma Rousseff, Prime Minister of India Manmohan Singh, President of Russia Vladimir Putin, President of China Xi Jinping and President of South Africa Jacob Zuma. Photo: RIA Novosti

The five major emerging national economies known by the acronym BRICS will meet in Brazil on July 15-16th in order to discuss global issues on cooperation in trade, investment, credit and finances.

The first topic in the agenda of the BRICS summit is the creation of the New Development Bank, which will provide finance for infrastructure projects in addition to meeting the needs of emerging and poorer economies, says the Russian Finance Minister Anton Siluanov.

The bank will start with $10 billion in cash and $40 billion in guarantees. The $50 billion will be eventually built up to $100 billion, and the bank will be able to start lending in 2016, the Russian minister says. Other UN members may also participate in the bank’s development, but their total share will not exceed 45 percent.

Possible energy cooperation will be evaluated

Russia is going to use this opportunity to suggest the other BRICS nations the establishment of an energy association and energy policy institution. According to the Russian Presidential Aide Yuri Ushakov, the association will focus on providing energy security for the participating countries, although the possible structure of the association has not been outlined yet. The energy association would be a joint initiative of public authorities and businesses.

The BRICS are composed by the world’s five largest emerging economies: Brazil, Russia, India, China and South Africa. Currently, these five countries make up over 40 percent of the world’s population and account for more than 25 percent of global GDP.

Innovation Norway is responsible for promoting the Norwegian industry abroad. Our office in Rio de Janeiro manages Innovation House Rio, our business incubator office, and helps Norwegian companies in their efforts towards the Brazilian market.

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Posted in Brazil

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