All BRICS members to have equal shareholding in new bank

NEW DELHI: Each of the five BRICS member countries will have equal shareholding in the New Development Bank and US Dollar will be base currency for the lender, External Affairs Minister Sushma Swaraj said today in Rajya Sabha.

"Other BRICS member have accepted India's democratic vision of equal shareholding for all BRICS members...There will be no dominance of anybody," she said responding to questions.

"There are no bottlenecks and disagreements in creating the bank jointly. National procedures are underway in the BRICS countries as agreed so that the agreement many come into force," she added.

Union Cabinet last evening cleared the creation of the proposed 5-nation bank that will mobilise resources for infrastructure projects and provide short-term liquidity to emerging economies in case of payment crisis.

Swaraj said since India will have the Presidency of the USD 100 billion Bank for the first five years, it would give India opportunity to play a leading role in giving shape of the New Development Bank, promoted by Brazil, Russia, India, China and South Africa.

"India as a member of BRICS will be entitled to receive funding from the New Development Bank for infrastructure projects, on application," she added.

New Development Bank is envisaged to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries to supplement the existing efforts of multilateral and regional financial institutions for global growth and development.

The agreement to set up the BRICS New Development Bank was signed in the sixth BRICS Summit in July last year.

Replying to a question, Swaraj said the base currency of the bank would be dollar, but if a country ask for a loan for its projects, it would be given in its currency only.