BRICS Bank Creation ‘Critical, Relevant, Historic’

BRICS New Development Bank (NDB), expected to be launched during the ongoing summit in the Russian city of Ufa, is a historic step, opening new investment opportunities between the member states, the head of the Brazilian delegation at the BRICS Business Council told Sputnik on Wednesday.

UFA (Sputnik), Anastasia Levchenko — The NDB was created July 2014 with an agreement between BRICS member states to mobilize resources for infrastructure and sustainable development projects. BRICS member states established a $100-billion liquidity reserve to ensure the bank's financial stability.

"The idea of having a bank inside BRICS to make happen investment projects is critical, relevant, important and historic," Jose Rubens de la Rosa told Sputnik.

Until recent times, BRICS has been just a "group for discussions," but the NDB is a first step in the process of institutionalizing the organization on a global level, de la Rosa said.

The NDB will boost investment cooperation between members, contributing to job creation, an outcome desired by all BRICS members, de la Rosa added.

BRICS is an association of five major developing economies, comprising Brazil, Russia, India, China, and South Africa. The group’s bank was conceived as an alternative to Western financial institutions, including the World Bank and the International Monetary Fund.