Chinese President Xi Jinping arrived in the Russian city of Ufa on Wednesday afternoon. During the visit, he will also attend the Shanghai Cooperation Organization (SCO) summit, in parallel with the BRICS meeting, and hold talks with Russian President Vladimir Putin.
The 7th BRICS Summit is aimed at boosting trade within the bloc and enhancing infrastructure development within the five nations.
The leaders are expected to adopt a joint declaration defining their cooperation going forward, along with taking key steps to operationalize the New Development Bank (NDB).
Ahead of Wednesday’s meetings between the leaders, the BRICS member states agreed upon the board of governors and president of the NDB during a meeting in Moscow on Tuesday.
Brazilian auto industry struggling amid economic crisis
Brazil’s economy is struggling to gain momentum. In 2008, investors praised the country as a safe haven from the financial meltdown in the United States and Europe. But in 2014 Brazil lost steam. CCTV’s Paulo Cabral filed this report from Sao Paulo.
Brazilian auto industry struggles amid economic crisisBrazil's economy is struggling to gain momentum. In 2008, investors praised the country as a safe haven from the financial meltdown in the United States and Europe. But in 2014 Brazil lost steam. CCTV's Paulo Cabral filed this report from Sao Paulo.
Speaking to CCTV in Ufa, KV Kamath, the newly-appointed President of the NDB, said that the bank will be beginning operations from this month, and it will be able to disburse its first loan in April 2016.
The NDB will have an initial authorized capital of $100 billion with the first $50 billion being equally shared by the bank’s founding members.
The bank will also establish a $100-billion foreign exchange pool to assist member states when they face dollar liquidity problems.
Launch of BRICS Development Bank
The BRICS Development Bank is up and running. A year ago, it was a just concept. The announcement was made on the eve of the start of the BRICS leaders’ summit in Ufa, Russia. CCTV America’s Julia Lyubova filed this report.
Launch of BRICS Development BankThe BRICS Development Bank is up and running. A year ago, it was a just concept. The announcement was made on the eve of the start of the BRICS leaders' summit in Ufa, Russia. CCTV America's Julia Lyubova filed this report.
China will be the largest investor, with $41 billion. India, Brazil and Russia will each give $18 billion, while South Africa will contribute $5 billion.
“BRICS bank will play an important role in India’s infrastructure funding needs. It is the first concrete institution manifestation of the BRICS. BRICS countries have very specific needs in terms of infrastructure development and the bank is going to provide an alternative channel for funding,” said Subir Gokarn, former Deputy Governor of the Reserve Bank of India and head of Brookings India.
Meanwhile, India along with other countries hope that the NDB will help emerging economies gain a larger say among international multilateral financial institutions.
Story by CCTV News
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