Russia’s government has submitted to the lower house of parliament a draft federal law on ratifying an agreement on the New Development Bank (NDB), operated by BRICS countries (Brazil, Russia, India, China and South Africa), a decree published on the cabinet’s website said on Wednesday.
"The agreement envisages the creation of a multilateral financial institution - the New Development Bank that will finance infrastructure projects and projects of sustainable development in BRICS countries and developing countries," a briefing note says.
The agreement on the multilateral development bank, seen as an alternative to the US-dominated World Bank and International Monetary Fund, was signed in mid-July 2014 at the 6th summit of five major emerging national economies in Fortaleza, Brazil.
The bank’s founding parties will be BRICS countries, which are to be vested with special authority unlike other members. The first president of the bank will be from India and the position will rotate every five years among the BRICS nations.
The key decisions of the bank shall be decided by a simple majority of the votes cast. The bank will be open for members of the United Nations, in accordance with the provision of the agreement.
The bank, to be headquartered in Shanghai, China, will have an authorized capital of $100 billion.
The Russian government considered and approved the draft law at a meeting on January 29.
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