THE PRIEST

During sixth BRICS summit held in Fortaleza, Brazil, on 15 July 2014 the participating nations announced signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements. The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures. It would have an initial pool of $100 billion, with China contributing $41 billion .India, Brazil and Russia will have equal contribution of $18 billion, and South Africa contributing the remaining $5 billion. The CRA will act as Banker of last resort for BRICS nations. where by India, Brazil and Russia can draw an amount equivalent to their sha...

During sixth BRICS summit held in Fortaleza, Brazil, on 15 July 2014 the participating nations announced signing of the Agreement establishing the New Development Bank (NDB), with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies. The Bank will have an initial authorized capital of US$ 100 billion. The initial subscribed capital will be of US$ 50 billion, equally shared among founding members. Membership of the Bank will be open to members of the United Nations, who will be able to subscribe to the shares of the Bank.Thus NDB will support other developing countries as well BRICS members’ share in the total paid up capital of the Bank (also their voting share) cannot be less 55%, thus ensuring that the founding members retain control over the NDB at all times. The first chair of the Board of Governors shall be from Russia. The first chair of the Board of Directors shall be from Brazil. ...