The BRICS New Development Bank will supplement the existing international financial system in a healthy way and encourage industrial growth in the developing world, Chinese Premier said Thursday.
“The foundation of the BRICS New Development Bank signifies a quantum leap in cooperation between BRICS member-states and is a major booster of financial cooperation between the developing countries and emerging economies,” Li Keqiang said when meeting on Thursday with BRICS Bank’s first president Kundapur Vaman Kamath, Chinese Foreign Ministry said on Friday.
Li Keqiang said China was ready to improve, together with the other members, the Bank’s management to have a “professional, highly efficient, transparent development bank of a new type.”
“We hope that the Bank will give a good stimulus to infrastructural development and industrialization of the emerging economies and the developing nations,” he said.
The New Development Bank of BRICS launched business in Shanghai on Tuesday with the opening ceremony attended by Chinese Finance Minister Lou Jiwei, Shanghai Mayor Yang Xiong and NDB President K.V. Kamath.
The BRICS countries include the world’s major emerging economies: Brazil, Russia, India, China and South Africa.
The NDB will have an initial capital of $50 billion to be equally funded by the five members who will have equal voting rights. The capital will be expanded to $100 billion within the next couple of years.
The members will also establish a reserve currency pool worth over another $100 billion. China has pledged to contribute $41 billion, Brazil, India and Russia will each contribute $18 billion, while South Africa will contribute $5 billion.