‘ BRICS Development Bank to Have HQ in Shanghai with Infrastructure Projects Centred in BRICS Countries ‘

#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:

Russian Finance Minister Anton Siluanov earlier said the short-list of cities for the bank’s headquarters included Shanghai and New Delhi.

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%.

The bank will engage in infrastructure projects mainly in the BRICS countries.

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