The new bank will symbolize the growing influence of emerging
economies in the global financial architecture long dominated by the
United States and Europe through the International Monetary Fund and
the World Bank.
Leaders of Brazil, Russia, India, China and South Africa are
expected to sign a treaty to launch the bank officially when they
meet at a BRICS summit in the northern Brazilian city of Fortaleza
on July 15.
Negotiations to create the lender have dragged on for two years,
with some members growing weary of China's desire to have a bigger
stake in the bank by putting in more capital.
A senior Brazilian government official said in May the five BRICS
nations were likely to agree to fund the bank equally, giving them
the same rights.
Briefing reporters ahead of the summit, Chinese Vice Foreign
Minister Li Baodong would not be drawn on the specifics of the share
structure, but was optimistic.
"On the BRICS development bank, all parties have extensive consensus
on this issue. Of course there are a few differences and different
viewpoints on technical issues," Li said.
"We are fully confident that we can reach consensus and establish
the BRICS development bank at this meeting," he added.
"On this type of technical issue, BRICS members must establish
consensus through friendly consultation," Li said, referring to the
bank shares issue. "There are all kinds of different considerations,
but the goal is to establish the BRICS bank as soon as possible."
The bank will have to be ratified by the countries' legislatures and
could begin lending in two years, the Brazilian official told
[to top of second column]
The new development bank would help cover growing demand for project
financing that has not been entirely met by global multilaterals,
which, for years, have been heavily criticized for meddling in the
domestic policies of sovereign borrowers.
The BRICS also need to decide if the bank will be based in New
Delhi, Shanghai, Johannesburg or Moscow. Brazil will not offer
headquarters because of upcoming presidential elections that could
delay negotiations, the Brazilian official said.
Xi will also visit Argentina, Venezuela and Cuba on his swing
through the region, and at the BRICS summit will have his first
meeting with new Indian Prime Minister Narendra Modi, Li said.
But he will not attend the final of the World Cup, as Brazil had
"Based on (his) schedule he will not be able to appear at the World
Cup final held in Brazil. This is unfortunate," Li added.
(Reporting by Michael Martina; Writing by Ben Blanchard; Editing by
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