* BRICS leaders to meet in July
* Development bank targets $100 billion in capital
* BRICS concerned over U.S. impasse on IMF reforms
By Lidia Kelly and Paul Simao
WASHINGTON, April 10 The BRICS bloc of emerging
economies will have all preparatory work done for setting up its
development bank by the group's summit in July, South African
Finance Minister Pravin Gordhan said on Thursday.
The bank Brazil, Russia, India, China and South Africa plan
to support infrastructure projects has been slow in coming, with
prolonged disagreements over its funding, management and
The group, which has struggled to take coordinated action on
most issues in the past year after the scaling back of U.S.
stimulus prompted an exodus of capital from their markets, is
hoping their leaders will officially launch the bank at their
July meeting in Brazil.
"We've made very good progress on the new development bank
and most of the formal documentation is ready," Gordhan told
journalists after a meeting of the BRICS finance ministers in
"There will be a few issues left, which will be resolved
between now and the middle of July when we hope the summit will
The start-up capital of $50 billion would eventually be
built up to $100 billion. Russia has proposed that each member
contributes an equal, 20 percent share, but the share
distribution is still to be decided, a BRICS source said.
The bank was first proposed in 2012. The proposal was
approved last year at a BRICS summit in South Africa. The
group's other project, a $100 billion fund designated to steady
currency markets, has also been off to a slow start, but Gordhan
said progress has been made on that project, as well.
"On the contingency reserve arrangements, we're also almost
90 percent of the way towards agreement. Formal documents are
ready and we have the basis to reach 100 percent agreement
before the summit."
CONCERNS OVER STALLED IMF REFORMS
The BRICS are also concerned that the U.S. Congress has
failed to ratify reforms to the International Monetary Fund that
would double the Fund's resources and give more say to emerging
markets, such as the BRICS.
"We've discussed our mutual concerns about the slow pace of
the IMF reforms and the kind of stalemate that we find ourselves
in currently and we hope work with everyone to find an equitable
solution," Gordhan said.
"But clearly a lot depends on the U.S."
Some officials from the Group of 20 advanced and emerging
economies have suggested moving ahead on the reforms without the
United States, although U.S. approval would be necessary for any
major decision to go forward because of Washington's controlling
share of IMF votes.
Gordhan declined to comment on what could be done, saying
only that "there are a number of options being explored" that
need further "cooking."
"We believe it's in the collective interest of all us to
have a strong and well-resourced IMF but also an IMF that is
increasingly even-handed in the way it approaches both advanced
economies and emerging markets as well," he said.
(Reporting by Lidia Kelly and Paul Simao; Editing by Tim