BRICS New Development Bank to enter companies’ capital

UFA, July 8. /TASS/. BRICS New Development Bank will not only provide debt financing but also enter companies’ capital, its first President Kundapur Vaman Kamath told TASS Wednesday. "We haven’t defined the proportions yet. We do not have any limitations regarding the volume of debt financing or investment into capital," he said. The agreement on creation of BRICS Pool of Conventional Currency Reserves was signed in July 2014 in Fortaleza, Australia. The agreement stipulates financial aid to BRICS member states. This aid may be provided by efficiently providing liquidity to the country in need by other members of the pool. Difficulties with the country’s balance of payments, which may be presented by a sharp drop in the national currency, lack of short-term liquidity and other financial problems, will serve as rationale. The initial volume of the Pool of Currency Reserves will total $100 bln, with the Russian share at $18 bln. The pool is conventional, which means that the reserve funds of the member states are not used until a joint decision to accede to the request is made. The representative of India Kundapur Vaman Kamath became the first president of the new BRICS Development Bank. A representative of Brazil has become the first chairman of the board of directors. Russian Finance Minister Anton Siluanov has been appointed as the chairman of the Board of Governors. BRICS is an informal association of five major emerging national economies: Brazil, Russia, India, China and South Africa. The group was founded in June 2006 at the St. Petersburg International Economic Forum and was known as BRIC prior to inclusion of South Africa in 2009. Russia is presiding in BRICS in 2015 and is chairing the BRICS Business Council until April 2016. An agreement on establishment of the BRICS New Development Bank to fund infrastructural and sustainable development projects in BRICS member-states and emerging economies was signed at the summit in 2014. Read more