BRICS bank not against IMF: Brazil’s President
July 17, 2014, 7:26 am

The BRICS Bank “will always have a different stand” from the IMF concerning developing countries, said Rousseff (left) in Brasilia on 16 July 2014 [PPIO]

“We don’t have the slightest interest in renouncing” the IMF, Rousseff told reporters on Wednesday.

The New Development Bank (NDB), designed as an alternative to the World Bank and the IMF, “is extremely important” for the BRICS countries, as it will profoundly change their financing conditions, Rousseff said.

However, “the new BRICS bank isn’t against” the world lender, she stressed. As far as the IMF is concerned, “we are interested in making it more democratic, making it more representative.”

The IMF reforms have hit a serious roadblock with the Barack Obama administration failing to push IMF quota reforms through the US Congress till now.

According to the Fortaleza Declaration, issued after the 6^th BRICS Summit, the NDB is aimed at mobilizing resources for infrastructure and sustainable development projects in the BRICS countries and other emerging economies.

The bank is to be headquartered in Shanghai, China, and an African regional center of the bank will be established in South Africa concurrently with the headquarters.

The Chinese Finance Ministry has said in a statement the BRICS development Bank will give a bigger say to BRICS and emerging economies in international economic fairs.

The bank is aimed at “mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies.”

A contingent reserve arrangement (CRA) was also included in the declaration with an initial size of 100 billion dollars

The CRA is an attempt to create a collective financial security network to face global challenges, China’s central bank said, noting it will improve market confidence and facilitate global financial stability.

TBP and Agencies