- Title: EMERGING-BRICS/BANK "BRICS" bank launches in Shanghai, to work with AIIB
- Date: 21st July 2015
- Summary: SHANGHAI, CHINA (JULY 21, 2015) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** OPENING CEREMONY OF THE NEW DEVELOPMENT BANK NEW DEVELOPMENT BANK PRESIDENT KUNDAPUR VAMAN KAMATH WALKING TO PODIUM PHOTOGRAPHER (SOUNDBITE) (English) NEW DEVELOPMENT BANK PRESIDENT KUNDAPUR VAMAN KAMATH SAYING: "We will cooperate and collaborate with all developmental players. So our object
- Embargoed: 5th August 2015 13:00
- Keywords:
- Location: China
- Country: China
- Topics: General
- Reuters ID: LVA7BYHFB8C3UM7MEAU7CFYMPY78
- Aspect Ratio: 16:9
- Story Text: Officials from the world's largest emerging nations launched the New Development Bank (NDB) on Tuesday (July 21), the second of two new policy banks heavily-backed by Beijing that are being pitched as alternatives to existing institutions such as the World Bank.
Also known as the BRICS bank, it follows soon after the establishment of the China-led Asian Investment Infrastructure Bank (AIIB). The new bank will fund infrastructure and development projects in BRICS countries - Brazil, Russia, India, China and South Africa.
The ceremony on Tuesday concludes a lengthy wait since the NDB was first proposed in 2012. Disagreements over the bank's funding, management and headquarters had slowed its launch.
"We will cooperate and collaborate with all developmental players. So our objective is not to challenge any of the existing system as it is but to improve and complement the system in our own way," NDB President Kundapur Vaman Kamath said.
He added that after a meeting with the AIIB in Beijing, the NDB had decided to set up a "hotline" with the AIIB to discuss issues.
"We have decided to set up a hotline between ourselves so that we can talk to each other to make sure that we have a common mind and a common approach because we believe that new institutions coming together with a completely different approach, will truly lead to the development, of not only the BRICS countries but in a longer run, the entire development world," Kamath said.
The ceremony, held in Shanghai where the NDB's headquarters are located, was relatively low-key in comparison to a June signing of the articles of agreement for the AIIB in Beijing, which was attended by delegates from 57 countries and President Xi Jinping.
The NDB has initial capital of $50 billion, which will be expanded to $100 billion within the next couple of years.
Kamath, a former executive with India's largest private bank ICICI Bank, told Reuters earlier this month that the NDB plans to issue its first loans in April next year.
China has pledged to contribute $41 billion to the NDB, giving it the largest share of voting rights at 39.5 percent.
Brazil, India and Russia will each contribute $18 billion, while South Africa will contribute $5 billion. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None