BRICS countries to consider establishing a development bank
As reported earlier by FE, leaders of BRICS countries will consider establishing a development bank, a BRICS education rating agency and foreign exchange reserve pool aimed at forming a capital security network among member countries.
Talks on setting up a BRICS Development Bank are progressing well with four meetings having been held in the span of one year between the finance ministries, besides numerous communications between their officials. According to sources, "As for the BRICS rating agency, it is a work in progress and I cannot say anything beyond that."
Finance ministers of the member countries, who will meet on March 26, are aware of a host of sticky points on the proposed BRICS bank. They agree that it is a good idea to have an equal participation in raising the planned $50 billion in seed capital by the five members — Brazil, Russia, India, China and South Africa — because the experience of different contribution yardsticks for institutions like World Bank and IMF have shown that the bigger contributor acquires a veto power over the rest.
Prime Minister Manmohan Singh accompanied by Finance Minister P Chidambaram, Commerce and Industry Minister Anand Sharma, National Security Advisor Shivshankar Menon,
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