Formation of the capital of New Development Bank (NDB), to be headquartered in Shanghai, will be shared equally by the five BRICS countries (Brazil, Russia, India, China and South Africa).
"The Bank shall have an initial authorized capital of US$ 100 billion. The initial subscribed capital shall be of US$ 50 billion, equally shared among founding members," according to the text of the declaration of the BRICS summit in Fortaleza published on the Kremlin's website.
The bank's charter documents were signed at the summit. Paid-up capital will total $10 billion and capital payable on demand will be $40 billion. Russia plans to contribute $2 billion to the bank over seven years.
"The first chair of the Board of Governors shall be from Russia. The first chair of the Board of Directors shall be from Brazil. The first President of the Bank shall be from India. The headquarters of the Bank shall be located in Shanghai. The New Development Bank Africa Regional Center shall be established in South Africa concurrently with the headquarters," the declaration says.
The bank is being formed with "the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies."
Each of the national banks in the BRICS countries will supply 10 people to staff the bank, VEB chief Vladimir Dmitriev said.
"We agreed on allocating a group of employees from our national banks, who will receive several months' of specialized training, and we will offer them as the professional backbone for the newly created bank," he said.
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