BRICS summit to discuss feasibility of development bank

NEW DELHI: The five-nation BRICS grouping will discuss the feasibility of establishing a development bank at the next month's summit in South Africa to strengthen economic co-operation among them.

BRICS will also deliberate on the possibility of a common currency, primarily for trade purposes.

India, Brazil, China, Russia and South Africa are part of this grouping of emerging economies.

South Africa's Acting High Commissioner to India Malusi Mogale today said a feasibility report on setting up the BRICS development bank would be presented at the upcoming summit.

"The development bank would help in providing additional and niche financing...," he said here.

Talking about the summit, to be held on March 26-27 in Durban, Mogale said there are issues that need to be sorted out on establishing a BRICS development bank. "It is not a small endeavour," he added.

The feasibility report has been jointly prepared by the five nations and the idea was discussed at the last BRICS summit which was held in New Delhi in March 2012.

According to the declaration issued after that summit, the leaders considered the possibility of setting up a new Development Bank for mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging economies.

Also, the bank would supplement the existing efforts of multilateral and regional financial institutions for global growth and development, it had said.

This year, BRICS will also discuss the possibility of have a common currency for the five nations mainly for trade, said an official of the High Commission.

Meanwhile, Mogale further said: "South Africa expects to advance the reforms in the international monetary system... We would also look at new areas for co-operation."

Immediately after the summit, there will be a meeting of African leaders with those from BRICS nations.