MOSCOW Feb 25 The BRICS bloc of emerging
economies will set up its development bank with a total capital
of $100 billion within five years, but member countries still
haven't agreed on their share in the bank's structure, a senior
Russian official said on Tuesday.
The bank is being set up by Brazil, China, India and South
Africa to fund infrastructure projects. But it has been slow in
coming, with prolonged disagreements over funding and management
of the institution.
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. Other BRICS officials
say their share should depend on the size of their economies,
Russia's Deputy Finance Minister Sergei Storchak said.
"Russia's stance is that this is a new development bank,
based on new principles, so we vote for equal participation, 20
percent from each," Storchak told journalists.
Establishing the bank was first proposed in 2012. It was
approved last year at a BRICS summit in South Africa.
Officials from the group met last weekend in Sydney on the
sidelines of a meeting of the finance ministers and central bank
governors from the Group of 20 developed and developing nations.
"After numerous attempts, we were able to agree that the
process of building up the capital ... will be stretched over
time," Storchak said. "We managed to come to an agreement that
the period of contributions to the capital's share can be up to
The group has struggled to take coordinated action in the
past year, after the scaling back of U.S. stimulus prompted an
exodus of capital from their markets. That in turn raised fears
about the health of the BRICS economies.
The five-year span allows time for the global economy to
improve and for growth in emerging markets to revive, which
would help in replenishing domestic budgets, Storchak said.
"(Then) we will get more favourable conditions for countries
to fully engage in the bank's operations," he said.
The location of the bank, another long-debated issue, was
not decided in Sydney.
"There are interesting diplomatic negotiations because each
country has declared that they will propose their candidates
(for the bank's headquarters)," Storchak said. "We have reached
an agreement that it should be decided through ... consensus."
The group's other project, a $100 billion fund designated to
steady currency markets has also been off to a slow start,
awaiting a final approval.