BRICS TO LAUNCH DEVELOPMENT BANK NEXT YEAR

Pretoria, April 26 (Bernama/NNN/PL)- The emerging economies of BRICS have announced that it will officially present the group's development bank early next year.

Foreign Minister of South Africa Maite Nkoana-Mashabane said the launch of the financial body will take place in this country in the first quarter of next year, without furnishing details on where the funds will come from.

She said the development bank of BRICS -made up of Brazil, Russia, India, China and South Africa- will fund infrastructure works and act as an alternative moneylender to the World Bank and other financial bodies.

The bloc has repeatedly requested a greater, more influential role in global financial institutions historically controlled by the US and Europe.

In the 4th Summit of BRICS last March, the leaders of member countries demanded a larger presence in the international financial architecture, more voice on behalf of the developing nations and the creation of a fairer international monetary system.

In that meeting, they agreed on founding the bank and opening a process to define technical aspects of its structure, contribution of capitals, voting power and criteria of selection of works to obtain investment, among other aspects.

Influential sectors have not concealed their concern that this and other ideas may lead the BRICS becoming a rival bloc capable of challenging the hegemony of the International Monetary Fund and the World Bank, so far presided over by Europe and the US.

BRICS also agreed in their meeting to facilitate credit granting in their respective national currencies to firms from member countries, aware that their current trade volume worth US$230 billion still has great potential and is likely to increase further.

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