BRICS leaders agree on establishing USD 100 billion New Development Bank

The leaders from Brazil, Russia, India, China and South Africa or the BRICS have agreed on establishing New Development Bank (NDB), which will have an initial authorized capital of US$100 billion.

The initial subscribed capital shall be of US$ 50 billion, equally shared among founding members.

The first President of the Bank will be from India and it will be located in Shanghai. The New Development Bank Africa Regional Center will be established in South Africa concurrently with the headquarters.

The first chair of the Board of Governors shall be from Russia, while the first chair of the Board of Directors shall be from Brazil.

The BRICS nations have directed their respective Finance Ministers to work out the modalities for operationalization of the Bank.

"The NDB will strengthen the cooperation among our countries and will supplement the efforts of multilateral and regional financial institutions for global development, thus contributing to our collective commitments for achieving the goal of strong, sustainable and balanced growth," said the BRICS leaders the Fortaleza Declaration adopted at the Summit.