#AceFinanceNews – MOSCOW – July 10 – BRICS bank will be head-quartered in Shanghai, Russian presidential aide Yury Ushakov told journalists on Thursday.
President of the Federative Republic of Brazil Dilma Vana Rousseff, Prime Minister of the Republic of India Manmohan Singh, second left, President of the Russian Federation Vladimir Putin, President of the People’s Republic of China Xi Jinping and President of the Republic of South Africa Jacob Zuma, from left, pose for group photographs. (RIA Novosti)
This was recorded in the documents, he added and reported by Itar-tass as follows:
According to Ushakov, the agreement on founding the New Development Bank of BRICS and on creation of an exchange reserves’ pool will be signed at the next summit of the organization to take place in Brazil’s Fortaleza July 15-16.
“Thus, the basis for the macroeconomic coordination of the five states will be laid,” the presidential aide noted. “The new institutions will allow enforcing the global finance system, which is particularly important amid the IMF reform that reached a deadlock.”
The authorized stock of the bank amounts to $100 billion, the dedicated capital — $50 billion, the paid-in capital — $10 billion (paid upon request — $40 billion).
The paid-in capital will be formed within 7 years.
“Russia’s stake is $2 billion, that means the capital is proportionally distributed among the bank’s participants,” Siluanov noted earlier.
There is an agreement between the countries that the stake of BRICS members in the capital will not be lower than 55%.
#AceFinanceNews – A high level of mutual understanding among the experts of the five countries on key problems became the distinguishing feature of the 6th Academic Forum of BRICS (Brazil, Russia, India, China, and South Africa), which ended on Wednesday, Vyacheslav Nikonov, leader of the Russian delegation at the forum, Chairman of the State Duma Committee on Education, and Chairman of the Board of the Russian National Commmittee for BRICS Studies, told Itar-Tass.
“There is an unspoken understanding, there is no need to reiterate the problems that gave rise to arguments at previous meetings when the elaboration of documents proceeded with difficulty,” he pointed out.
“Matters concerning economic security in a broad sense were of particular importance” to the Russian experts. “This refers to problems connected with a de-dollarization of the economies and mutual settlements, the task of an accelerated establishment of a BRICS Development Bank which could implement projects regardless of the attitude of the financial institutions of the West, the formation of a BRICS Stabilization Fund, the use of national currencies in mutual and multilateral settlements, and matters that have a bearing on the de-dollarization of gold-and-currency reserves,” the Russian delegation leader explained.
Following his briefing to the Fifth Committee – the General Assembly body dealing with administrative and budgetary issues – Mr. Takasu said that cash positions are projected to be positive at the end of this year but “significant amounts of assessment remain unpaid.”
In connection with the Organization’s regular budget, he said that unpaid assessments amounted to 36 per cent or $945 million out of the $2.6 billion. The figure is up from $855 million at this time in 2012. Meanwhile, available cash in the regular budget cash totalled $55 million as of 1 October.
The number of Member States which have paid in full their contribution to the regular budget increased to 134 by the 5 October cut-off date, compared with 129 at this time in 2012.
“This demonstrates the very strong commitment and support of Member States to the United Nations,” Mr. Takasu said.
The United States, Brazil and Venezuela are the top three Member States, in that order, with unpaid assessments of $795 million, $75 million and $22 million respectively, Mr. Takasu said.
Fifty-six other Member States owed the Organization $53 million for the regular budget.
He noted, however, that the US had paid more than $1.56 billion dollars in September to UN peacekeeping operations.
The outstanding assessments for peacekeeping operations, the second of the overall’s budget four areas, increased $3.4 billion as of 1 October compared with $1.3 billion at the end of 2012.
“This sounds alarming, but it shouldn’t be,” Mr. Takasu said, noting that scale of assessments changed this year and the UN Member States could not be notified of the final figures until January, thereby slowing down the payment timeline.
As for outstanding payments to Member States for contributing troops, formed police units and related costs, Mr. Takasu said the Organization is projected to cut this amount from $525 million in December 2012 to $423 million by the end of this year.
India, Ethiopia, Bangladesh, Pakistan, Rwanda, and Nigeria top the list of the countries to which payments are owed.
For international tribunals, unpaid assessments amount to $60 million, relatively stable from $63 million at this time last year. In addition, the Capital Master Plan (CMP), related to the ongoing renovations of the UN Headquarters in New York, only has $1.6 million in unpaid assessments out of $1.87 billion.
- UN says overall financial situation is `sound’ (azstarnet.com)
- UN: Financially sound, but complicated and fragmented in reforms (worldbulletin.net)
- UN owes USD 80 mln to India for peacekeeping operations (news.in.msn.com)
- UN says overall financial situation is ‘sound’ (star-telegram.com)