Prime Minister Narendra Modi left on Sunday to attend the five-nation BRICS Summit in Brazil. Modi will be meeting the heads of the other countries to discuss regional crisis and to have a stabilised economy.
Among all this the leaders are also to finalise setting up of a development bank and seek reforms of the United Nations and international financial organisations in the July 14-15 event.
The BRICS Development Bank is expected to be launched on July 15. The BRICS Bank is a proposed bank run by the five BRICS states. Here are five points that you must know about BRICS Bank-
1- The idea to have a BRICS Bank was first proposed in July 2009, in Durban, South Africa at the 5th BRICS Summit. At the upcoming 6th BRICS Summit, leaders are likely to sign a treaty to launch the bank.
2- New Delhi, is in the race with Johannesburg and Shanghai to house the headquarters of the BRICS Bank. Though reports suggest that Shanghai is likely to win the race, many have cited language barrier and freedom of expression to be a problem with Shanghai.
3- Main aim of BRICS Bank is to ensure the economic stability for the emerging economies in case the US dollar continues to fluctuate.
4- The Bank will have a capital of 50 billion US dollars, with each country contributing 10 billion US Dollars. Initially China had said that it would offer 41 billion US dollars but this raised a concern among others who though that it may give China more power.
5- China initailly was apprehensive about the BRICS Bank and had expressed differences over setting up of the headquarters and other technical issues but later on China supported the idea of the Bank and said that issues can be resolved.