Brics nations to create $100bn
development bank
15 July 2014 Last updated at 21:01
The leaders of the so-called BRICS countries - Brazil,
Russia, India, China and South Africa - sign a deal to
create a new $100bn development bank and emergency
reserve fund.
The leaders of the five Brics countries have signed a
deal to create a new $100bn (£58.3bn) development
bank and emergency reserve fund.
The Brics group is made up of Brazil, Russia, India,
China and South Africa.
The capital for the bank will be split equally among the
five participating countries.
The bank will have a headquarters in Shanghai, China
and the first president for the bank will come from India.
Brazil's President, Dilma Rousseff, announced the
creation of the bank at a Brics summit meeting in
Fortaleza, Brazil on Tuesday.
A new player
At first, the bank will start off with $50bn in initial
capital.
The emergency reserve fund - which was announced as
a "Contingency Reserve Arrangement" - will also have
$100bn, and will help developing nations avoid "short-
term liquidity pressures, promote further Brics
cooperation, strengthen the global financial safety net
and complement existing international arrangements".
The creation of the Brics bank will almost surely create
competition for both the World Bank and other similar
regional funds.
Brics nations have criticised the World Bank and the
International Monetary Fund for not giving developing
nations enough voting rights.
One of the goals for the bank - whose creation has been
discussed for some time - would be to increase the
amount of money loaned to developing countries to help
with infrastructure projects.

God is gøod. All good things cumin s.a black's way. No matter we hv aids and lazy bt gud thngz happen to us. They keep cuming to us i hope and pray other countries will also prosper! Nkosh sikelel' afrika... God bless africa