China, BRICS New De­vel­op­ment Bank sign MOU

The Pak Banker - - COMPANIES/BOSS -

China and the BRICS New De­vel­op­ment Bank signed doc­u­ments on the bank's head­quar­ters in Shang­hai on Satur­day, mark­ing the com­ple­tion of the le­gal pro­ce­dures be­fore the op­er­a­tion of the bank. Chi­nese For­eign Min­is­ter Wang Yi and the bank's Pres­i­dent K.V. Ka­math signed an agree­ment while Shang­hai Mayor Yang Xiong and Ka­math signed a Mem­o­ran­dum of Un­der­stand­ing on the head­quar­ters of the bank in Shang­hai.

The doc­u­ments, signed on the side­lines of the G20 Fi­nance Min­is­ters and Cen­tral Bank Gov­er­nors Meet­ing in Shang­hai, gov­erns the es­tab­lish­ment of the head­quar­ters of the bank in Shang­hai and make pro­vi­sion for the req­ui­site im­mu­ni­ties, priv­i­leges and other fa­cil­i­ties to be ac­corded to the bank.

The bank, launched last July, is a mul­ti­lat­eral de­vel­op­ment in­sti­tu­tion op­er­ated by the BRICS mem­bers (Brazil, Rus­sia, In­dia, China and South Africa) as an al­ter­na­tive to the ex­ist­ing mul­ti­lat­eral de­vel­op­ment bod­ies like the World Bank and the In­ter­na­tional Mon­e­tary Fund.

The bank, with an ini­tial sub­scribed cap­i­tal of $50 bil­lion to fi­nance, will "start appraisal of the po­ten­tial projects in April," Wang said, adding that China hopes the bank will sup­port the de­vel­op­ment and con­nec­tiv­ity of BRICS coun­tries and de­vel­op­ing coun­tries at large.

The bank, aim­ing at fund­ing in­fra­struc­ture and sus­tain­able de­vel­op­ment projects, should strive to make it­self a new type of mul­ti­lat­eral de­vel­op­ment in­sti­tu­tion, op­er­at­ing in a pro­fes­sional, trans­par­ent, ef­fi­cient and green man­ner, Wang said. China sup­ports In­dia to host a suc­cess­ful BRICS lead­ers' meet­ing this year and China, as ro­tat­ing chair next year, will work with other BRICS coun­tries to pro­mote the eco­nomic and political co­op­er­a­tion in par­al­lel, Wang said.

Com­ment­ing on the down­ward pres­sure faced by BRICS economies, Wang said eco­nomic slow­down is not a unique prob­lem of the BRICS mem­bers, but a prob­lem world­wide. "The BRICS coun­tries are poised for growth and in­creas­ing role in in­ter­na­tional political and eco­nomic affairs," Wang said.

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