EMERGING-BRICS/SIGNING CEREMONY BRICS leaders launch development bank at summit in Ufa

Record ID: 147801

  • Title: EMERGING-BRICS/SIGNING CEREMONY BRICS leaders launch development bank at summit in Ufa
  • Date: 9th July 2015
  • Summary: UFA, RUSSIA (JULY 9, 2015) (RUSSIAN POOL) VARIOUS OF FIVE BANKING EXECUTIVES FROM FIVE BRICS COUNTRIES SIGNING MEMORANDUM ABOUT NEW DEVELOPMENT BANK, BRICS LEADERS STANDING BEHIND THEM VARIOUS OF BANKING EXECUTIVES SHAKING HANDS WITH BRICS LEADERS, PEOPLE APPLAUDING, BANKING EXECUTIVES LEAVING STAGE PEOPLE IN AUDIENCE VARIOUS OF BRICS LEADERS TAKING SEATS ON STAGE BRAZILIA
  • Embargoed: 24th July 2015 13:00
  • Keywords:
  • Topics: General
  • Reuters ID: LVABST2ADTHII6SL123RIMGFN0GB
  • Aspect Ratio: 16:9
  • Story Text: The leaders of India, China, South Africa and Brazil and Russia on Thursday (July 9) launched a development bank with $50 billion in capital at the BRICS group of emerging economies summit in the Russian remote city of Ufa.
    Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Chinese President Xi Jinping, Brazil's President Dilma Rousseff and South African President Jacob Zuma watched as the banking executives from the five countries signed a memorandum about the New Development Bank (NDB).
    "We discussed in detail the situation in the global economy. We are concerned by market instability, high volatility of oil and commodity prices, accumulating of sovereign debt by a range of large countries. All these structural imbalances directly impact the growth dynamics of our economies. In these conditions the BRICS countries intend to actively use their own resources and internal development resources," Putin read from a statement on behalf of the BRICS leaders.
    According to the bank's president Kundapur Vaman Kamath appointed in May this year, the NDB plans to raise money both on local markets and internationally. The bank is headquartered in Shanghai, China.
    The bank, which the BRICS countries see as an alternative to the World Bank, will have its capital expanded to $100 billion within the next couple of years. It plans to issue its first loans, yet to be agreed, in April - a plan Kamath said was on track.
    He added that the NDB will seek international and local agencies ratings - a necessary step for issuing debt.
    Russia has been hit by Western sanctions over its role in the Ukraine crisis, measures that limited access to foreign financing for many large firms and banks, such as the state oil company Rosneft , private gas producer Novatek and Russia's biggest bank, Sberbank.
    According to Kamath the NDB should not be viewed as a tool to help sanctions-hit companies but said the bank will look at requests from Russian companies.
    Russian Finance Minister Anton Siluanov told reporters this week that some projects, such as a request by Rosneft for financial support, may be listed for possible NDB funds.
  • Copyright Holder: POOL (CAN SELL)
  • Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register