The leaders of the states belonging to the group of major developing economies, the BRICS, Brazil, Russia, India, China, South Africa, agreed to create a new development bank and a common reserve fund, as announced by the President of Brazil Dilma Rousseff speaking at summit in Fortaleza. In accordance with the provisions of the agreement, the base of the development of this bank will be in Shanghai, while the leader for a period of five years will be India and its funds are amounted to 50-100 billion dollars. It will create a common reserve fund with 100 billion dollars available.
The New Development Bank, according to the announcement of the sixth summit of BRICS, will invest in development projects in the Member States of the team. The Fund, thanks to the capital, will allow to avoid short term liquidity pressures and to promote greater cooperation of the Member States of the BRICS and strengthen the global financial safety, noted in the statement of the meeting.
The group countries of BRICS, which count 40% of the world’s population and 1/5 of the GDP of the planet, talked for years about this dual plan which essentially seeks to provide a counterweight to the respective institutions of the World Bank and the International Monetary Fund, which are not adequately represented. According to Rousseff, the creation of these institutions was a priority for the Member States team BRICS, to protect themselves from various crisis scenarios: it will be something like a safety net to increase protection for the countries of BRICS and other countries. It is an issue for our security, said the hostess of the meeting.
The Russian President Vladimir Putin proposed to create a union of states of the BRICS group in the field of energy, but also a common fuel reserve to increase energy security in developing economies. We have proposed to set up an energy compound of BRICS. Under the roof, we could create a strategic fuel reserve and an institute for energy security, said Putin to the leaders of other countries in the group of Brazil, India, China and South Africa, after the summit agreed to create a development bank and a common currency reserve two institutions with available 100 billion dollars each.
These steps will help to strengthen the energy security of our country, added Putin.
By Nicole P.