BRICS New Development Bank to start operations in July

“Russia has fulfilled its part of the work required to create the New Development Bank of BRICS. It is assumed that the entire formation process of this new institution will be completed by the group’s summer summit this July in Ufa.” – this was announced on Wednesday at a press conference in MIA Russia Today by Dmitry Kurochkin, Vice President of the Chamber of Commerce and Industry of the Russian Federation.

“Before the bank can start operating, practically all member states must first ratify the agreement. As for Russia, the State Duma ratified the agreement on the establishment of the New Development Bank this February, and the corresponding law on the ratification of the Agreement on the  New Development Bank was signed by the Russian President on March 9, so we have, in principle, done all that was needed on our part,” said Mr. Kurochkin.

He added that according to the information he had, India has also ratified the agreement on the establishment of the bank.

“It is expected that, given the ratification processes currently underway in the other three countries, this process should be completed by the middle of this year, that is, just in time for the next BRICS Summit in July,” he added.

The final agreement on the establishment of the BRICS Bank was signed in June 2014, in the Brazilian city of Fortaleza. The Bank will become a major multilateral development institution with announced capital of $100 billion. It is being created to finance infrastructure projects in the BRICS countries as well as developing countries.

BRICS – is an informal interstate association of Brazil, Russia, India, China, and South Africa. The total population of the BRICS countries is 2.83 billion people (42% of the world population). BRICS countries occupy 26% of the earth’s land mass, and their total GDP reaches $15.435 billion, accounting for 14.6% of the global GDP.

First published in Russian by RIA Novosti.

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