Brasília – The Brazilian president Dilma Rousseff has said this Tuesday (15th) she is optimistic regarding the establishment of the Brics New Development Bank and of a currency reserve fund for the bloc, which comprises five countries – Brazil, Russia, India, China and South Africa. Upon leaving the hotel where she is staying in Fortaleza, Ceará, to attend the 6th Brics Summit, Rousseff stated that the institution should benefit emerging and developing countries.
“The bank will provide funds that will guarantee investment in infrastructure. The Contingent Reserve Arrangement, worth US$ 100 billion, will contribute to curb and manage the volatility seen in several economies, stemming from the slowing down of the United States’ monetary stimulus program. [This] warrants increased safety, a safety net-of-sorts to Brics countries and others,” said the president.
The new bank and currency reserve fund should be announced this afternoon, following a meeting of Brics heads of state. The bank will have an initial capital of US$ 50 billion, with US$ 10 billion in cash and US$ 40 billion in guarantees. Once it has been signed, the contract establishing the bank will require approval from the parliaments of the five Brics countries. The currency reserve fund will have a starting capital of US$ 100 billion, which will be available to Brics countries experiencing financial difficulties.
*Translated by Gabriel Pomerancblum
