21 Jul 2015
BRICS Bank commences its initial operations on Tuesday - Xinhua
FXStreet (Mumbai) - A new bank launched by the emerging economies grouped in BRICS started its initial operations on Tuesday in China's commercial capital of Shanghai.
The New Development Bank (NDB) is the first institution launched by BRICS countries -- Brazil, Russia, India, China and South Africa -- as a permanent instrument aimed at supporting the emerging markets' cooperation. It opened for business on Tuesday, as reported by the Chinese official news agency Xinhua.
The new lender starts with estimated capital of $100 billion.
Xinhua quoted bank President K. V. Kamath that the management of the new international lender is "working on initiation of operations, making business policy and developing project preparations. Regular operations would begin late this year or early in 2016.”
The bank may grant its first loan by April next year.
While the loans can’t be used to pay down dollar-denominated debt, they may be used as an emergency source of liquidity that could help central banks roll over their obligations if their foreign reserves become stressed.
The New Development Bank (NDB) is the first institution launched by BRICS countries -- Brazil, Russia, India, China and South Africa -- as a permanent instrument aimed at supporting the emerging markets' cooperation. It opened for business on Tuesday, as reported by the Chinese official news agency Xinhua.
The new lender starts with estimated capital of $100 billion.
Xinhua quoted bank President K. V. Kamath that the management of the new international lender is "working on initiation of operations, making business policy and developing project preparations. Regular operations would begin late this year or early in 2016.”
The bank may grant its first loan by April next year.
While the loans can’t be used to pay down dollar-denominated debt, they may be used as an emergency source of liquidity that could help central banks roll over their obligations if their foreign reserves become stressed.