Russia to contribute $2 billion to BRICS bank over seven years
The BRICS countries (Brazil, Russia, India, China and South Africa) will contribute $10 billion over seven years to the capital of the development bank they are creating, with Russia contributing $2 billion, Finance Minister Anton Siluanov told reporters.
BRICS leaders will make a final decision on the creation of the bank at a summit in Brazil on July 15-16.
"Decisions on the creation of the bank, along with the currency pool are supposed to be made at the upcoming summit. We've discussed this for a long time. Finance ministers were instructed to prepare this decision," Siluanov said.
He said the question of where the bank's headquarters will be located has not been decided yet. There are essentially two candidates - Shanghai and New Delhi, the minister said. The decision will be made by the countries' leaders.
Siluanov recalled that the bank will have authorized capital of $100 billion, allocated capital of $50 billion, paid-in capital of $10 billion and callable capital of $40 billion.
"We've agreed that paid-in capital will be paid in over seven years. Russia's share is $2 billion, in other words the capital is distributed proportionately among the bank's participants," Siluanov said.
The institution will be called the "New Development Bank," the minister said. Other UN member countries will also be able to participate in the bank, but the share of the BRICS countries is not supposed to drop below 55 percent.
The bank's management bodies will have a three-level structure, consisting of a board of governors, board of directors and president. The president will be elected on the recommendation of one of the founding countries on a rotation basis, for a term of five years. Voting will be conducted on a weighted system according to the shares of the members. The decision will be made by a special majority, requiring the support of four out of five country representatives and two-thirds of the general vote.
Siluanov said the bank could be established earlier than the previously set date of 2016. "Changes need to be made to legislation, including the law on the budget, the decisions need to be ratified. This will require time, if it works out in 2015, we'll launch in 2016," the minister said.
The bank will work on infrastructure projects, primarily in BRICS countries.