Date
22 August 2017
The BRICS emerging market nations are launching a development bank, with an initial US$50 billion pool. Photo: Bloomberg
The BRICS emerging market nations are launching a development bank, with an initial US$50 billion pool. Photo: Bloomberg

BRICS bank likely to be based in Shanghai

Shanghai is likely to be the headquarters of a new BRICS development bank, despite fears by some members of the group that China could hijack the bank to serve its interests, Reuters reported.

Brazil, Russia, India, China and South Africa, the so-called BRICs emerging market nations, are due to sign off on the new institution on Tuesday, along with an emergency reserves fund, after two years of negotiations, it said.

Russian presidential adviser Yuri Ushakov, citing discussion papers prepared by the member countries, said late last week that the bank would be based in Shanghai. 

Earlier, Russia’s finance minister said India was vying with China to host the new infrastructure lender.

An Indian government official on Monday played down the debate and said India’s top priority was to make sure members of the institutions all had equal voting rights, unlike Western-run multilaterals they seek to challenge, such as the World Bank, the report said.

“Equitable shareholding is the principal goal for India,” the official said. Second on India’s list of concerns was giving the bank a name that would allow non-BRICS nations to join in future, he said.

The BRICS will pool an initial US$50 billion in the bank, with each country contributing an equal amount.

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