BEIJING, July 7 The five BRICS nations have
reached a broad consensus on their $100 billion development bank
though some differences remain, a senior Chinese diplomat said
on Monday ahead of a summit in Brazil next week to be attended
by President Xi Jinping.
The new bank will symbolise the growing influence of
emerging economies in the global financial architecture long
dominated by the United States and Europe through the
International Monetary Fund and the World Bank.
Leaders of Brazil, Russia, India, China and South Africa are
expected to sign a treaty to launch the bank officially when
they meet at a BRICS summit in the northern Brazilian city of
Fortaleza on July 15.
Negotiations to create the lender have dragged on for two
years, with some members growing weary of China's desire to have
a bigger stake in the bank by putting in more capital.
A senior Brazilian government official said in May the five
BRICS nations were likely to agree to fund the bank equally,
giving them the same rights.
Briefing reporters ahead of the summit, Chinese Vice Foreign
Minister Li Baodong would not be drawn on the specifics of the
share structure, but was optimistic.
"On the BRICS development bank, all parties have extensive
consensus on this issue. Of course there are a few differences
and different viewpoints on technical issues," Li said.
"We are fully confident that we can reach consensus and
establish the BRICS development bank at this meeting," he added.
"On this type of technical issue, BRICS members must
establish consensus through friendly consultation," Li said,
referring to the bank shares issue. "There are all kinds of
different considerations, but the goal is to establish the BRICS
bank as soon as possible."
The bank will have to be ratified by the countries'
legislatures and could begin lending in two years, the Brazilian
official told Reuters earlier.
The new development bank would help cover growing demand for
project financing that has not been entirely met by global
multilaterals, which, for years, have been heavily criticized
for meddling in the domestic policies of sovereign borrowers.
The BRICS also need to decide if the bank will be based in
New Delhi, Shanghai, Johannesburg or Moscow. Brazil will not
offer headquarters because of upcoming presidential elections
that could delay negotiations, the Brazilian official said.
Xi will also visit Argentina, Venezuela and Cuba on his
swing through the region, and at the BRICS summit will have his
first meeting with new Indian Prime Minister Narendra Modi, Li
But he will not attend the final of the World Cup, as Brazil
"Based on (his) schedule he will not be able to appear at
the World Cup final held in Brazil. This is unfortunate," Li
(Reporting by Michael Martina; Writing by Ben Blanchard;
Editing by Clarence Fernandez)